Energy crisis
Since March 2026, global energy prices have been rising again as a result of the US-Israel conflict with Iran.
Last updated March 2026
What this means for energy bills
Households across the UK use various types of energy to keep their homes warm and powered. Many households use gas central heating and electricity for power, some use electricity for both, while others use liquid fuels, like LPG.
Gas and electricity
For domestic gas and electricity customers, bills are protected from the impacts of the US-Israel conflict with Iran by the price cap until July 2026. The price cap (which puts an upper limit on the unit rate that suppliers can charge customers on default tariffs) has already been set by Ofgem at £1,641 for a typical dual fuel household for the April-June period. This is actually a reduction of 6.6% on the previous quarter. So average bills are going down from 1 April, not up. The risk is the July 2026 price cap onwards, which hasn’t been set yet. That’s where rising wholesale prices caused by the conflict could start to feed through to households.
Heating oil
Households living in remote or rural areas are more likely to use liquid fuels like LPG to heat their home. Heating oil is not regulated, unlike the gas and electricity markets, and there is no price cap in place. This means those households using these fuels are being hit harder and faster by immediate price hikes as a result of the US-Israel conflict with Iran, and we are aware of households reporting order cancellations or being unable to purchase the amount of fuel they require.
Typically, the summer is the time of lowest energy use for UK households as heating costs are lower, so this gives time to prepare, not panic, to be ready for next winter. But more support could be needed from the government and Ofgem.
In March 2026, the government announced £50 million in support for households reliant on heating oil to be implemented through the local authority Crisis and Resilience Fund from 1 April. Our response is here.
How did the energy crisis unfold?
The energy crisis first began in October 2021 as a result of many factors, including Russia’s invasion of Ukraine. Prior to the crisis, the typical annual energy bill was £1,277.
By October 2022, the UK government stepped in to cap a typical bill at £2,500 a year, on top of introducing £400 of energy bill support payments (the Energy Bills Support Scheme). Despite this, many households experienced fuel poverty and ran up large debts. UK suppliers are, as of March 2026, owed over £4 billion.
To read more about how we got to this point, please click here.
Where can I get help now?
If you or someone you know can’t afford to heat their home then we’re here to help. We offer a range of advice and support directly to people in need. We also offer help via frontline workers and other intermediaries. For advice and support on what you can do click here. Also, contact your energy supplier. You may also be entitled to access the Local Authority Assistance Fund or Winter Fuel Support Scheme in Wales.
For media enquiries please contact nick.palmer@nea.org.uk.