Energy bills could rise for 500,000 homes as Iran war hits supply

Temie Laleye

By Temie Laleye


Published: 29/03/2026

- 09:57

Those worried about rising costs are advised to contact their supplier promptly

Around 500,000 UK households are facing the prospect of higher energy bills as global gas and oil supplies come under pressure.

Those relying on heat networks are expected to be among the most affected.


Heat networks, which supply heating and hot water to multiple homes from a single central source, can leave properties more exposed to price rises.

Restrictions on shipping through the Strait of Hormuz, alongside damage to key gas infrastructure, have intensified pressure on wholesale energy markets, driving up costs for households.

While most domestic customers benefit from Ofgem's price cap protection, those dependent on heat networks lack this safeguard and could see costs rise significantly in the coming months.

Unlike standard gas and electricity customers, households on heat networks have no option to switch providers when prices climb.

The costs they face can vary considerably based on how their supplier purchases energy, with some operators locked into pricier commercial agreements.

Heat network providers typically acquire energy through bulk contracts that may be renewed at various points throughout the year, enabling elevated costs to reach consumers far more rapidly than under the regulated price cap system.

Woman looking at bill and energy billEnergy bills will change from next month | GETTY

According to Heat Trust data, customers on these networks normally pay between 10p and 15p per kilowatt hour for gas. During the previous energy crisis, however, some households experienced prices exceeding 5p per kWh, resulting in dramatically higher bills.

The London Assembly Environment Committee has issued a warning that a repeat of previous price spikes could be imminent and is demanding swift Government intervention.

Leonie Cooper, who chairs the committee, told The Sun that rising global energy costs are likely to feed through to households.

She stated it is only fair that those on heat networks receive support equivalent to other consumers who benefit from the price cap.


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Energy gridWithout proper planning, the UK risks further energy shortfalls | GETTY

Campaigners are pushing for assistance to be tied to the cap, which is set to decrease to £1,641 annually from April, arguing this would protect vulnerable households from sudden and severe bill increases.

Heat networks were only brought under formal regulatory oversight earlier this year, following previous price spikes that left some customers facing bill increases of up to 450 per cent.

Under the new framework, Ofgem now has authority to intervene where pricing is considered unfair, and customers can pursue complaints through the Energy Ombudsman if services fall short.

Ofgem

An Ofgem spokesperson confirmed the regulator is collaborating with providers to evaluate the impact on consumers

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GETTY

Nevertheless, the regulatory system remains in its early stages, meaning many households continue to face exposure during this transitional period.

An Ofgem spokesperson confirmed the regulator is collaborating with providers to evaluate the impact on consumers, emphasising that companies are expected to treat customers fairly.

Those worried about rising costs are advised to contact their supplier promptly, as payment plans and other support options may be available.