Household energy bills in Britain may rise by 25 to 30 percent in the first quarter of 2027 due to rising natural gas prices. These predictions have been made by analysts following the ongoing Middle East crisis and rising international gas prices.
Sudden Increase in Energy Bills
Currently, household energy bills have increased by 4 percent since October 2026, reaching their highest level in the past three years. Predictions indicate that in the first quarter of 2027, these bills may significantly rise by another 30 percent. This forecast has been particularly made by EDF, one of the largest energy suppliers in Britain.
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Impact of the Middle East Crisis on Prices
According to other forecasts, Bloomberg Economics also expects household energy bills in Britain to increase by 25 percent from January to March 2027. This increase is due to rising international gas prices resulting from the escalation of the Middle East crisis. Last month, the UK energy regulator (Ofgem) raised the energy price cap for household bills by 4 percent, meaning prices are at their highest level at the beginning of winter.
The energy price cap acts as a tool to protect households from excessively high bills. This cap allows energy suppliers to charge a specific rate for each kilowatt-hour of energy consumed by household consumers. It is expected that this price cap will increase by 30 percent at the beginning of 2027, reaching £2,165 ($2,897) for an average household. In comparison, this figure was £1,723 ($2,306) for the October to December 2026 quarter.
Given that global LNG supply has decreased due to the transportation of Qatari and Emirati shipments from the Strait of Hormuz, price increases are expected to continue this winter. Bloomberg Economics predicts that the energy price cap will increase by 25 percent, reaching £2,150 ($2,878) per household in Britain.
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