Institution: Middle East Conflict May Push UK Household Energy Spending Up by 13%
Xinhua News Agency, London, May 20 (Reporter Zhao Yang, Zhang Yadong) - The British energy consulting firm "Cornwall Insight" released a forecast report on May 19 predicting that the energy price cap for households from July to September 2026 may increase by 13% due to rising energy prices caused by the conflict in the Middle East.
According to the final forecast results shown in the report, a British household that uses both gas and electricity is expected to have an annual energy bill of up to £1,850 (approximately $1.339 per pound), compared to a previous forecast of £1,641.
The report points out that the main reason for the rise in energy prices is the significant increase in global energy prices following the outbreak of the conflict in the Middle East. Although a temporary ceasefire has somewhat mitigated market volatility, prices remain high.
The report predicts that even if the conflict were to end immediately, the damage to infrastructure leading to supply chain disruptions will have lasting effects, making it difficult for the energy cost cap for British households to return to April levels this autumn.
Craig Lowry, chief consultant at Cornwall Insight, stated that the truly effective way to address the vulnerability of the UK's energy structure is to increase the output of renewable energy. Although this requires significant investment and cannot quickly reduce energy consumption prices, it can lead to lasting stability in energy prices in the long run.
The conflict in the Middle East is projected to increase UK household energy expenditures by 13%, with bills potentially reaching £1850. This rise is attributed to global energy price hikes following the conflict, despite a temporary ceasefire. Experts suggest that improving renewable energy production is essential for long-term stability in energy prices.
- Middle East conflict is expected to raise UK household energy spending by 13%.
- Annual energy bills for a typical UK household could reach £1850.
- Previous forecast for energy bills was £1641.
- Temporary ceasefire has not significantly reduced high energy prices.
- Long-term solutions involve increasing renewable energy production.