Leading UK trade association warns of rising energy prices

Oliver Dean | 23rd March 2026 | Trade Associations
The volatility of the region has done little to calm oil and gas prices (Photo by Majid Saeedi/Getty Images)
The volatility of the region has done little to calm oil and gas prices (Photo by Majid Saeedi/Getty Images)

As the war in Iran continues, Energy UK warns that bills will continue to rise.

Energy UK has recently published a briefing warning that ongoing Middle East tensions risk keeping gas and oil prices elevated, with potential knock-on effects for household energy bills. Yet, the trade body says it is too early to determine the full impact. The April to June 2026 price cap was confirmed at £1,641 on 25 February, before the conflict in the Middle East escalated, meaning households on standard variable tariffs will not feel the effect of any price spike until July at the earliest. Those on fixed tariffs are insulated for the duration of their contracts. Energy UK stressed that Britain's gas supply remains secure, noting that only around 2% of UK gas comes from countries in the Gulf region, with the majority supplied by the North Sea, Norwegian pipelines, and LNG imports predominantly from the United States. The briefing cautioned against calls for accelerated North Sea drilling as a solution to rising bills. While increased domestic production could bolster supply in the short to medium term, new output would not directly reduce energy prices, as UK gas pricing largely tracks international markets. Energy UK argued that the most effective long-term defence against price volatility is expanding renewable and low-carbon generation and reducing household reliance on gas through electrification, including heat pumps and solar. The trade body also flagged concern for the estimated 1.7 million homes reliant on heating oil, which is drawn from an unregulated market and is more directly exposed to global crude price swings. On the 16th March, the Prime Minister announced £53 million in support for heating oil households, alongside a series of consumer protection measures....

Subscribe to The Mace

Join the member community shaping British politics and stay ahead of what's really happening in the world of politics and public affairs, with expert analysis, breaking news, and insider insights from Westminster and Brussels. The Mace is the leading news source and resource for the government affairs industry, offering required reading and lobby intelligence for professionals.

To see what you are missing out on by not subscribing to The Mace, click here to download our full membership info-pack. This includes having no paywall on op-ed content or profiles/interviews, allowing professional profiles to be read with maximum impact and visibility by government, special advisers, MPs, peers, civil servants, and policy and political decision-makers.

Industry Reacts: Lucy Powell and education reform

Lucy Carrier-Pilkington | August 6, 2026

The Burnham administration has unveiled an ambitious new vision for Britain's school system. Mace asks leaders across the education sector for their verdict.

Rising costs and uncertainty continue to weigh on UK chemical supply chain

Mace | August 4, 2026

Industry leaders say the UK chemical supply chain has "enormous potential" but is suffering due to business costs, trade conditions and uncertainty.

Industry leaders signal a ‘momentous day for social care’

Mace | July 30, 2026

The leading association for not-for-profit care has called the Prime Minister's announcement 'a seminal moment'

Industry reacts: Burnham cuts business rates for pubs, clubs and music venues in England by 20% 

Lucy Carrier-Pilkington | July 23, 2026

Mace investigates what industry leaders really think about this new measure.

Travel industry leaders plan to step up lobbying efforts under Burnham government

Lucy Carrier-Pilkington | July 22, 2026

The leading travel association has set out an engagement program with MPs, civil servants, advisors and government bodies.

Industry Reacts: Small Tech and the social media ban

Lucy Carrier-Pilkington | July 15, 2026

“If the ban is pitched ever so slightly wrong, then companies which have nothing to do with social media are going to get caught in it,” experts warn.

Industry Reacts: Burnham’s ambitious housebuilding plans  

Lucy Carrier-Pilkington | July 2, 2026

Andy Burnham has promised the ‘biggest rebalancing of power our country has ever seen’. The Mace investigates what industry insiders think of his vision.

Is the pub economy coming home for the World Cup?  

Lucy Carrier-Pilkington | June 10, 2026

As England prepares for next Wednesday's World Cup opener, The Mace explores how the tournament could boost the pub economy.

Divisive debate erupts over potential workers’ rights overhaul 

Lucy Carrier-Pilkington | June 4, 2026

A new workers' rights consultation could spell the end of 'exploitative' zero-hours contracts, but critics warn the move could further damage the shrinking labour market.

Shipping latest: Dual-fuel fleets continue rapid expansion

Mace | May 13, 2026

Latest data released by the shipping industry reveals duel-fuel vessels are taking over the market.