Energy bills forecast to hit £1,999 in January in BIGGEST rise for four years as Iran war chokes gas supplies
From the Newshound archive · first published 30 September 2026.
Energy bills from major UK suppliers, as household costs rise today with the January price cap now forecast to reach nearly £2,000 amid the conflict with Iran.
Electricity and gas costs look set to climb £276 a year come January, according to Cornwall Insight, which is projecting a 16% increase to £1,999 — far higher than its earlier forecast of 9% and the steepest rise in two years. Behind the move is the Iran war, which has effectively shut the Strait of Hormuz since February and left EU gas storage at its lowest September level in 15 years. EDF chief executive Simone Rossi has cautioned that Britain is "walking into a second energy crisis", and PM Andy Burnham acknowledged there is not "huge room for manoeuvre" to soften the impact.
Thursday's 4% Ofgem cap increase, pushing typical bills to £1,723 — the highest since July 2023 — will already be in place before the additional £276 January hike lands.
Gas prices are already up 27% year on year from Thursday, and the End Fuel Poverty Coalition is calling on ministers to bring in an emergency heat tariff.
Martin Lewis describes the October rise as "voluntary", arguing households can sidestep it by moving to a fixed deal, with the cheapest options currently around 4% below the new cap rate.
