‘There is worse to come’, households are warned as energy bills set to hit three-year high this autumn

ENERGY bills will hit a three-year high this autumn with households warned: “There is worse to come.” The fresh blow threatens to derail Andy Burnham’s drive to ease the cost-of-living crisis, just weeks after he entered No 10. Regulator Ofgem yesterday raised its price cap by four per cent from October after the Iran conflict sent wholesale gas prices soaring. A typical household covered by the cap faces a £60-a-year rise — £5 a month — to £1,723. Analysts predict a further nine per cent jump in January — hiking the typical annual bill another £149 to £1,872. Cornwall Insight warned there was little prospect of relief this winter even if the conflict eases because European gas stocks remain low. READ MORE ON POLITICS The Prime Minister admitted rising bills were “difficult” for families. He said his decision to axe VAT on electricity from October, which Ofgem says will save households £45, would “give people that little bit of help”. Energy Secretary Miatta Fahnbulleh said Labour would look at possible steps to “protect families from unaffordable bills”. She also appeared to concede renewable subsidies and investment in Britain’s energy infrastructure were contributing to costs. Most read in Money Asked if bills were being pushed up by the Middle East crisis and political choices over green spending, she replied “it is both”. Later, she told Sky News it was “not true” that Net Zero was adding to bills. Shadow Energy Secretary Claire Coutinho said: “Labour promised to cut energy bills by £300, but they’ve gone up by nearly £400 instead.”