Energy UK has urged ministers to urgently prepare targeted support for households as the Middle East conflict threatens to push energy bills higher.
The industry body warned that while it is too early to confirm the full impact, suppliers estimate bills could rise by as much as £250 a year if current price pressures persist.
That would fall short of the record increases seen after Russia’s invasion of Ukraine but Energy UK said prolonged disruption could again force government intervention.
The group cautioned against repeating the blanket support measures introduced in 2022 which cost the Treasury more than £35 billion.
It said targeted support for low and lower middle income households could have reduced that cost to around £12.5 billion.
Energy UK said existing schemes such as the Warm Home Discount do not go far enough with around 2.5 million vulnerable customers currently missing out.
The organisation is calling for a rapid cross government effort to improve how support is delivered if bills rise further.
It has proposed a “vaccine style” taskforce bringing together ministers officials and industry experts to accelerate data sharing and identify households most in need.
That could include using information held by departments such as Work and Pensions and Health to target support at those already receiving welfare or with serious medical conditions.
The group also suggested introducing an application route for households not captured by existing schemes.
Alongside targeted measures Energy UK said a more limited universal intervention could still play a role.
Reducing policy costs on electricity bills would help all households but particularly those using electric heating who are more likely to be in fuel poverty.
It added that lowering electricity costs would also support uptake of heat pumps and electric vehicles, helping reduce reliance on gas and exposure to global price shocks.
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