2 publishers · first seen Tue, 27 Oct 2026 16:47 UTC · updated Wed, 28 Oct 2026 15:53 UTC
UK energy bills are forecast to rise to nearly £2,200 per year from January 2027, following a surge in wholesale gas prices driven by global supply disruptions, including the war involving Iran and the closure of the Strait of Hormuz. The price cap reached £1,723 in October 2026, the highest since 2022, with wholesale costs accounting for 44% of the cap and over 80% of the increase since 2020.
Ofgem has approved £29bn in upfront investment for gas and electricity grids, contributing to rising network charges, which make up 24% of bills. The Jackdaw gas field in the North Sea has been approved for drilling, but campaigners argue it will not reduce bills, as gas will be sold at international market prices. The UK government maintains the move supports jobs and energy security.
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