Households warned of higher energy bills this winter

Households across the UK are being warned to brace for higher energy bills this winter as European countries scramble to replenish their natural gas stores before the weather dips.

Wholesale natural gas prices are already at three-year highs, which could lead to increased energy bills for businesses and consumers.

Storage levels are significantly lower than usual for this time of year, with countries facing the prospect of rushing to buy gas now or paying potentially higher prices when the winter comes.

The European benchmark natural gas price topped €75/MWh on Wednesday, its highest level since late 2022, the tail end of a spike caused by Russia's invasion of Ukraine. Natural gas prices in the UK this week topped 185p per therm, also the highest since late 2022.

Experts warn low storage levels could push up gas prices further, leaving households with higher bills. Hamad Hussain, senior climate and commodities economist at Capital Economics, said he did not expect the waterway to begin reopening until early 2027.