Summary
The chief executive of Centrica, which owns British Gas, stated that energy bills in the UK could increase significantly if oil prices remain high due to the Iran conflict. The possible increase is linked to the disruption in oil supply caused by the halted passage through the Strait of Hormuz, while gas supply is less affected.
Key Facts
- Chris O'Shea is the chief executive of Centrica, which owns British Gas.
- He said household energy bills would likely rise if oil prices stay high because of the Iran conflict.
- The ongoing conflict has caused oil prices to rise by 45%, reaching $106 a barrel.
- The Strait of Hormuz, a crucial route for 20% of the world's oil, is effectively closed, impacting oil supply.
- Only 3-4% of global gas supply is affected, so the impact on electricity bills may be smaller.
- A forecast suggests energy bills in England, Scotland, and Wales could increase by £332 in July.
- The UK government is discussing measures to address the war's impact on the cost of living.
- Housing Secretary Steve Reed mentioned a £53m support package for those struggling with heating costs.
