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Thu, 03 Sep 2026

Thu, 03 Sep 2026 Households warned gas price spike could pile fresh pressure on energy bills

Experts warn low storage levels could push up gas prices further, leaving households with higher bills.
UK households are bracing themselves for higher energy bills this winter as wholesale natural gas prices surge to three-year highs. European countries, including the UK, are scrambling to replenish their gas stores before winter sets in. However, storage levels are lower than usual and may not be sufficient to meet demand. Wholesale natural gas prices have topped €75/MWh, while those in the UK reached 185p per therm - both the highest since late 2022. Analysts warn that the renewed fighting between the US and Iran will keep the Strait of Hormuz closed, disrupting global oil and gas supplies. The closure of the strait is expected to last until early 2027, with a lag before energy flows freely through it and pressure on prices eases. Economists predict that natural gas prices will top €80 by the end of this year, with analysts at Cornwall Insight forecasting domestic energy prices could rise 9% in the new year. The UK's energy price cap is set to increase by 4% in October, leaving a typical household paying £1,723. However, forecasters warn that further increases are possible if wholesale prices continue to rise. Critics have pointed out that the UK has low levels of storage and called for government support to expand its Rough facility. The Department for Energy Security and Net Zero (DESNZ) says gas prices are determined on international markets but is open to discussing proposals to increase storage sites. Experts say there is a "glass half full, and a glass half empty" picture unfolding, with both higher energy bills and reduced demand for natural gas due to the shift towards renewables. However, they warn that a colder-than-average winter could drive up demand and push prices up further. The El Niño over the Pacific Ocean may impact Britain's winter weather, but its effects are still uncertain.