HOUSEHOLDS face the prospect of bombshell bills this winter amid predictions of a £200 hike in the energy price cap to be announced this week.

The cost of oil and gas has rocketed in recent months delivering billions in profits to industry giants such as BP and Shell in the wake of US President Donald Trump and Israeli PM Benjamin Netanyahu’s illegal attacks on Iran. 

Domestic fuel costs have been relatively shielded by Ofgem’s price cap, but on Wednesday the regulator will announce a new cap, enforceable from July 1, and analysts Cornwall Insight have warned that it could soar by 13 per cent, from the present £1,641 to £1,850.

The hike may have limited impact in the summer months, but the analysts predict that, even if the war on Iran were to end, damage to infrastructure in the region will mean prices are unlikely to fall when the cap is next reviewed in October, leaving families across Britain counting the costs over winter.

Chancellor Rachel Reeves told MPs last week that the government will “stand ready to act if market conditions worsen significantly,” but End Fuel Poverty Coalition co-ordinator Simon Francis argued that time is now.

“Households need reassurance and support, not a summer of suspense,” he said.

“That means the government must act before winter to spell out what support will be available.”

Pointing to recent announcements such as a cut in VAT on attraction tickets over the summer holidays, and lowering import tariffs selected food, the government said: “Tackling the affordability crisis is our number one priority. 

“The lesson of yet another fossil fuel crisis is the UK needs to get off the fossil fuel rollercoaster and on to clean, homegrown power we control.”