British energy price cap to rise 4% as Iran war pushes up costs

​Most British households ‌will see ​their energy costs rise from October after energy regulator Ofgem announced a ‌4% hike in its domestic price cap as the war in Iran pushes up wholesale costs. The rise will ‌be a blow to the new Prime Minister ‌Andy Burnham, who has pledged to ease cost-of-living pressures, and more than wipes out measures he announced last month to cut ⁠tax on ​electricity bills.

"High ⁠international gas prices are continuing to drive energy costs in the ⁠UK. We welcome the government’s intervention to remove VAT from ​electricity bills, without which customers would have faced even ⁠higher costs this winter,” said Neil Kenward, Ofgem’s director general for ⁠markets. The ​increase, a £60 rise to £1,723 ($2,348) from the previous cap for July to September, will hit around ⁠22 million households on variable tariffs, with the price cap covering around ⁠65% ⁠of customers.

($1 = 0.7337 pounds)