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....

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