ENERGY bills could now jump by £332 a year in July amid growing fears of a global energy crisis due to the Iran war.

Ofgem’s price cap for July to September is set to rise by 20 per cent to £1,973 a year for a typical dual fuel household, analysts said.

Israel and Iran targeting energy sites in the Middle East have led to sharp increases in wholesale prices which will feed into the cap, according to Analysts Cornwall Insight.

The 20 per cent prediction is double the rise it predicted for the quarter just over two weeks ago.

National Energy Action urged the government and Ofgem to “prepare properly now” to bring in targeted financial support for the most vulnerable households when prices rise.

Head of policy and public affairs Matt Copeland said: “Today’s forecast shows the potential for another energy crisis is real, and the consequences are severe. 

“Even a small rise hits low-income and fuel poor households very hard. They are already carrying massive debt and have no room to absorb further pressure.

“If we wait for a full-blown crisis before acting, it will be too late for the millions already struggling to stay warm and stay out of debt.” 

The End Fuel Poverty Coalition said the predictions represent a 90 per cent increase over pre-energy crisis bill levels since before the war in Ukraine, and a 26 per cent rise since the 2024 general election.

Coalition co-ordinator Simon Francis said: “This amounts to a £332 Trump Tax on household energy bills as the conflict continues. At the same time, energy industry profits are likely to rise again as households are left exposed to another global oil and gas price shock.

“Government should be preparing targeted help now for those most exposed, while speeding up the longer-term reforms that cut bills for good.

“No family should be left paying the price for global fossil fuel instability while energy firms cash in. That means immediate support for households facing the sharpest costs now, alongside faster action to reduce dependence on volatile gas markets for good.”

Yesterday Britain’s competition watchdog the Competition and Markets Authority said that it is looking into concerns that households relying on heating oil are facing sudden price increases on the back of the conflict.