British bills come down despite Iran war

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As the world grapples with the energy crisis caused by the Iran war, British bills are coming down. Ofgem’s new price cap of £1,641 comes into force today, a reduction of 7%. What gives? The cap was set before the US and Israel attacked Iran. It lasts until July, when it is expected to rise by nearly £300. During the last energy crisis, instigated by Russia’s invasion of Ukraine in 2022, the government offered universal support at vast expense. Borrowing has since become much more expensive, so ministers are planning a more targeted support package this time around. Options include subsidising the bills of low-income households and freezing fuel duty.