The Daily Express reports that US-Israeli strikes on Iran and retaliatory strikes across the region have caused global gas prices to spike, driving UK wholesale energy prices up by approximately 50%. This means it currently costs energy suppliers more to buy energy to supply to customers, which has led UK suppliers to withdraw a raft of fixed-price tariffs from the market or reprice them at higher levels. Octopus Energy has issued a £200 warning to customers following the ongoing conflict, though the exact number of customers affected remains unclear.
According to data from price comparison website Uswitch, the number of fixed deals has more than halved since last weekend, while those remaining have increased in price, leaving consumers with fewer options to switch and save. Households on existing fixed deals do not need to take action as prices remain locked in for the duration of their fix, but those on flexible tariffs or nearing the end of a fixed deal are being urged to consider their options.
Energy experts have warned that if wholesale energy prices remain high, Ofgem’s price cap for July will almost certainly increase, making fixing now a potential money-saving option, though it is impossible to predict energy prices that far ahead, so switching carries risk. The energy price cap will provide protection for households until the start of July, regardless of developments in the Middle East.
Around £150 will be cut from the average household bill from April 1 as a long-running energy efficiency programme introduced under the Tories is scrapped. Major UK energy suppliers, including Octopus Energy, British Gas, E.ON, OVO and EDF, have all confirmed plans to pass on savings to all customers from April, meaning a reduction in household energy bills.
Solar panel sales have risen sharply since the start of the Iran war, according to Octopus Energy, with households opting for bigger arrays of roof panels. Sales were up 54% so far this month compared with the same period last month, the company said on Thursday. Octopus reported that many customers were choosing supersize systems with 12 panels instead of the usual arrays of 10, and that heat pump sales had also risen by more than 50%, while sales of electric vehicle charger systems were up by 20%.
Greg Jackson, the Octopus chief executive, told the BBC’s Big Boss Interview podcast this week there had been a huge jolt in solar sales compared with February. On 17 March, Octopus reported a 27% increase in solar sales inquiries since the start of the Iran war. Good Energy, a green electricity supplier, said this week it had seen a doubling of interest in solar panels in the past three months.
The government announced earlier this week that most new homes were likely to have solar panels from 2028 and that it would lift a ban on sales of plug-in solar kits, which have proved popular across Europe and in countries such as Pakistan. Solar panel sales may be set for a greater boost within months when plug-in solar kits are due to become available from high street retailers and supermarkets.
A report this week from Electrify Britain, a campaign backed by Octopus, found that using solar panels and heat pumps would cut people’s fuel bills in the event of worsening oil crises.