𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The Tories have slammed Ed Miliband’s “mad plan” to avoid using the UK’s oil and gas, as an energy crisis caused by the Middle East conflict pushes up household energy costs. Bills are set to increase by £288 a year in July, as soaring wholesale costs caused by the Iran war push up Ofgem’s price cap, according to the latest forecasts.

Cornwall Insight said its prediction for the watchdog’s price cap from July to September now stands at £1,929 for a typical dual fuel household – an increase of £288 or 18% on April’s cap. Claire Coutinho MP, Shadow Energy Secretary, said: “It is unforgivable that Labour are continuing with Ed Miliband’s mad plan to shut down our own energy supplies in the middle of an energy crisis.”

Ms Coutinho said: “Shutting down the North Sea means we are losing out on £25 billion in tax receipts that we could use to cut bills and reduce the cost of living.” The Tories have pledged to reduce legal obstacles which prevent new oil and gas projects being approved in the UK, with the publication of draft legislation.

Conservative leader Kemi Badenoch said her party’s Get Britain Drilling Now Bill would “stop the lawfare and free our oil and gas industry”.

The Bill proposes to remove the requirement for downstream emissions to be considered in planning decisions, therefore reversing the ruling to block the development of the Rosebank site in the North Sea.

The party claims more drilling would secure cheap, reliable energy and cut energy bills – in addition to making Britain more resilient to global energy supply and price shock.

Cornwall Insight warned a rise in the cap in July was “effectively unavoidable” with rocketing wholesale prices over March now locked into the calculation and little chance that they will fall below pre-war levels in the coming weeks.

The price most households pay for energy under the cap fell by 7% from April 1, or £117 a year to £1,641, driven by the Government’s promise to cut bills by an average of £150 by removing green subsidies.

But the prospect of a big jump in gas and electricity costs when the cap is next updated in July has prompted the Government to say it will look at further targeted support as part of contingency planning efforts.

Ofgem will confirm its next price cap level by May 27.

Craig Lowrey, principal consultant at Cornwall Insight, said: “A rise in July is pretty much unavoidable, but how high prices go remains to be seen.

“There is some relief in the timing, summer is when energy demand is at its lowest, which should soften the impact on household energy expenditure.

“If higher wholesale prices continue, it will be the effects on the October cap that have the most impact, and that is when the question of government support for households is likely to be revisited.”

Minister for energy consumers, Martin McCluskey, said: “Tackling the affordability crisis is our number one priority and I know many families will be thinking about how events in the Middle East might impact the cost of living at home.

“We will continue to fight people’s corner through this crisis and, as the Energy Secretary has said, if it’s necessary to intervene, we will.”