Britain’s domestic energy price cap is expected to increase by approximately 18% in July, according to analysts at Cornwall Insight on Tuesday. The forecast represents a slight reduction from their previous estimate of a 20% rise.

Cornwall Insight projects the price cap will climb to 1,929 pounds ($2,549.17) per year for typical household use, up 288 pounds from the current level of 1,641 pounds in April.
The anticipated increase follows disruptions to shipping in the Middle East and a halt to liquefied natural gas exports from Qatar, one of the world’s largest gas exporters. These events have driven a surge in international gas prices.

Finance minister Rachel Reeves stated she would consider measures to protect households from rising energy costs, though she faces limitations due to the country’s high borrowing costs.

Wholesale energy prices represent the largest single factor in British energy regulator Ofgem’s domestic price cap, which is set quarterly using a formula that also accounts for suppliers’ network costs and environmental and social levies.

Ofgem is scheduled to publish the next price cap level by May 27.
Source: Investing.com