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Typical annual household energy bills could go up by £332 in July, energy consultancy Cornwall Insight calculates, although the figure is likely to change.

The forecast reflects the surge in oil and gas prices as the US-Israel war on Iran continues, and could rise further or fall back depending on where energy prices go next.

The energy regulator Ofgem will set the July cap on energy bills for households on 27 May, based on wholesale prices in March, April and May.

The cap sets a maximum price for each unit of gas and electricity and is changed every three months. Actual bills depend on the amount of energy used.

Cornwall Insight's latest forecast predicts that, under Ofgem's price cap for July to September, a dual-fuel household using a typical amount of gas and electricity would pay £1,973 a year, up from the current £1,641.

The independent energy consultancy is currently updating its forecast weekly due to the volatile situation in the Middle East.

Wholesale energy prices jumped in the first three weeks of March, but the final cap will also depend on what happens to prices in the remaining 10 weeks before the end of May.

Source: BBC News