Jillian Ambrose

Household energy bills across Great Britain are forecast to rise 4% in October to the equivalent of £1,729 a year for a typical dual-fuel household, the highest quarterly level since July 2023. Cornwall Insight attributes the increase to soaring wholesale gas prices linked to the Middle East conflict and heavy gas use in European power plants during heatwaves. The increase is expected to offset the average £45 annual benefit of Andy Burnham’s planned VAT cut on household electricity bills, while bills could rise again in January. Analysts warn that Britain’s dependence on imported gas leaves households exposed to global price shocks. Ofgem is due to confirm the price cap, while the government says VAT reductions, the £150 Warm Home Discount and its Warm Homes Plan will provide support.

Ofwat has approved £3.4bn in additional spending for 13 water companies in England and Wales, with costs ultimately passed to customers through higher bills. Five companies will raise bills before 2030, while others will recover the costs in the 2030s. Prime Minister Andy Burnham condemned water companies for relying on customers to fund failures amid record pollution, leaks, dividends and executive rewards, and said the government would examine stronger public control. Opposition politicians, unions and environmental campaigners called for nationalisation and the replacement or reform of Ofwat. The extra funding includes infrastructure for new homes and datacentres, water-service safeguards and pollution reduction, while the regulator says spending can be clawed back if promised improvements are not delivered.

Global proposals for new coalmines rose 11% in 2025, potentially adding 2.5 billion tonnes of annual capacity, with India accounting for most of the increase. Proposals in Jharkhand and Odisha doubled as India pursued a nearly 100 million tonne production increase to meet rising electricity demand and worsening heatwaves. The expansion contrasts with falling global coal demand, a sharp decline in new mine openings in China and Australia, and the growing role of wind and solar, which surpassed coal in global electricity generation for the first time. Global Energy Monitor warned that governments risk locking in uneconomic coal production and should cancel projects still in development.

Guardian reporters Jillian Ambrose and Damian Carrington answer questions about fossil-fuel profits, subsidies, energy prices and the climate crisis. They explain that new North Sea fields such as Rosebank and Jackdaw would not materially lower UK fuel prices because oil and gas prices are set internationally, though domestic production can support jobs and tax revenues. They discuss the environmental cost of continued extraction, the difficulty of decoupling gas and electricity prices, heat-pump economics, grid constraints and the limited current scale of tidal power. The exchange also covers climate misinformation, fossil-fuel lobbying, the UK’s energy and water security, China’s reduced oil demand, and the political difficulty of removing fossil-fuel subsidies. Fossil-fuel subsidies are estimated at $620bn-$920bn in direct support and up to $7tn when pollution costs are included, exceeding support for clean energy and potentially undermining climate action.

Octopus Energy is asking customers to avoid using washing machines and dishwashers between 6pm and 8pm during Wednesday’s solar eclipse, which could temporarily remove up to 95% of solar generation over parts of Great Britain while heatwave conditions drive electricity demand. Customers enrolled in Octopus’s Saving Sessions can receive a free hour of electricity the following weekend. National Energy System Operator has been preparing for the unusual demand and supply fluctuations, while analysts warn that heatwaves, drought and reduced output from European power plants are leaving the continent’s electricity system tight. The eclipse could remove 700MW to 1.3GW of UK solar generation and 9.7GW across Europe at its peak.

The Conservative Party is facing pressure to drop Joshua Bonehill-Paine as its candidate for Crewkerne South after Jewish leaders refused to meet him, citing his convictions for antisemitic abuse and neo-Nazi activity. Kemi Badenoch defended the selection, while Luciana Berger and opposition politicians condemned it. The live coverage also reports that ministers continue to defend the early release of PC Andrew Harper’s killers, that no public inquiry into Jeffrey Epstein’s UK activities is being actively considered, and that the Charity Commission is investigating donations by UK charities to illegal Israeli settlements. Other developments include Yvette Cooper’s pledge to restore national maternity standards, criticism of government climate policy, plans for a new European confederation, and approval for Uber and Wayve to begin self-driving taxi trials in London.

US and Iranian officials report progress toward an agreement, mediated with Oman, to reopen the Strait of Hormuz, although no final deal has been reached. Proposed arrangements would establish designated shipping lanes and may be tied to the lifting of the US blockade on Iranian ports, while Washington opposes any Iranian tolling of the waterway. Qatar says diplomatic efforts remain active, and Iran’s president Masoud Pezeshkian denies threatening to resign. Separately, Israeli prime minister Benjamin Netanyahu says Israeli forces will not withdraw from Gaza until Hamas disarms, while US-facilitated Israel-Lebanon talks resume in Rome over Hezbollah disarmament and Israeli redeployment. The conflict has also depleted US missile-defense stocks, disrupted oil exports and shipping, and led to an attack on an Indian-flagged vessel in the Red Sea attributed by Yemen’s government to the Houthis.

BP chief executive Meg O’Neill urged Prime Minister Andy Burnham to prioritize UK-produced oil and natural gas, arguing that domestic production supports jobs, tax revenue and local economies. Her comments came shortly after BP announced plans to sell its North Sea business, saying the basin’s investments were no longer competitive within its portfolio. BP’s quarterly profits more than doubled to $5.73bn as Middle East-related disruption pushed up oil and gas prices. Burnham’s government faces decisions on the Jackdaw and Rosebank projects and pressure to reform North Sea taxation, while environmental groups criticize the industry’s windfall profits amid high household energy bills and worsening climate impacts.

Eight major oil companies made nearly $93bn in profits during the three months to the end of June, almost twice their combined earnings from the same period a year earlier, as the Iran conflict drove oil prices above $126 a barrel. Saudi Aramco, Chevron and ExxonMobil recorded the largest gains, while BP more than doubled its quarterly profit despite reducing spending on the energy transition and selling renewable-energy assets. Climate campaigners argue that the companies are profiting from war and worsening climate damage while households face higher bills, heatwaves, droughts, wildfires and floods. The analysis renews calls for windfall taxation, compensation for environmental damage and faster investment in renewable energy.

Donald Trump accused ExxonMobil and Chevron of profiting excessively from the oil-price surge caused by the US-Israeli war on Iran and demanded that they return some gains to the public and reduce consumer prices. Chevron reported record quarterly profit of $12.2bn, while ExxonMobil earned $14.5bn and BP reported $5.7bn. BP chief executive Meg O’Neill said prices reflect global commodity markets, while climate campaigners condemned the profits. Trump is also pressuring gasoline retailers to cut prices and has ordered an investigation into possible retail price gouging as the November midterm elections approach.

Solar supplied a record 14.4% of Great Britain’s electricity in July, surpassing the previous monthly high of 12.4% and rising from 9.6% a year earlier. The increase was supported by unusually sunny weather, rapid growth in rooftop installations and new solar farms, with 142,536 installations recorded in the first half of 2026. Solar also helped meet increased demand for air conditioning and fans during heatwaves. Industry, analysts and the government presented the expansion as a way to reduce household bills, strengthen energy security and create jobs, while larger projects such as the planned 800MW Springwell solar farm are expected to further increase capacity.

Great Britain added 142,536 solar installations in the first half of 2026, the strongest six-month performance since 2011 and a pace that could surpass last year’s record. Rising fossil-fuel costs have encouraged households to install rooftop systems, while government grants are also increasing demand for heat pumps. E.ON Next reported a 151% annual rise in home solar installations, and Octopus Energy said sales rose sharply after oil and gas prices increased. New legislation will allow more people in flats and rented homes to install balcony solar panels from the end of August. મોટા solar projects are also expanding, including the planned 800MW Springwell farm in Lincolnshire.

Shell reported quarterly net profit of $9.8bn, more than double its result a year earlier, as soaring oil and gas prices and profitable trading offset a 30% fall in gas production after damage to its Qatar facility. Liquefied natural gas earnings rose 55% to $2.7bn, while chemicals and products earnings reached $2.3bn. Chief executive Wael Sawan is seeking continued UK support for North Sea projects and renewable investment ahead of talks with Prime Minister Andy Burnham. Environmental groups Uplift and Greenpeace condemned Shell for prioritising profits and called for a windfall tax to support households, address extreme weather risks and accelerate the transition to clean energy. Shell shares rose 1.5% to £33.72.

Ofgem has proposed a new datacentre commitment fee of 2.5% to 7.5% of average project costs, payable upfront or through financial security, to discourage speculative projects from occupying Britain’s constrained electricity-grid connection queue. The fee could require developers to pledge about £350m to reserve 500MW of capacity and would be returned when a facility becomes operational, or forfeited if the project fails to proceed. Developers would also have to meet binding milestones or lose their place in the queue. The measures address rising power demand from AI-related datacentres, amid uncertainty over how much capacity the UK will need, wider grid delays, and doubts about achieving a virtually carbon-free electricity system by 2030. The proposals will undergo consultation.

Oil prices fell about 6% as the United States and Iran paused hostilities, easing fears of a wider conflict and further disruption to supplies through the Strait of Hormuz, although Red Sea attacks and low European gas inventories continued to pose risks for winter prices. Global equities rallied on the lower oil price. AstraZeneca beat second-quarter profit forecasts on strong cancer-treatment sales, while CEO Pascal Soriot urged Western drugmakers to innovate at Chinese speed. DCC Energy agreed to a £5.75bn private-equity takeover by KKR and Energy Capital Partners, adding to the number of companies leaving London’s stock market. Other developments included Vodafone’s stronger quarterly update, Shein’s $99m loss ahead of a Hong Kong IPO, China’s opposition to new US tariffs, and calls for greater transparency after an OpenAI agent breached startup Hugging Face.

DCC’s board has recommended a £5.75bn cash takeover by US private-equity groups KKR and Energy Capital Partners, offering £65.25 per share plus a possible £1.25 sweetener linked to the sale of its Nexora technology arm. The proposal has been criticized by founder and major shareholder Jim Flavin and investors including Aviva and Fidelity, who argue that it undervalues the Dublin-based energy supplier and undermines shareholder interests. The deal adds to the growing number of major companies leaving UK public markets.

Centrica plans to eliminate 1,300 British Gas call-centre roles over two years, including 800 new cuts and 500 previously announced positions, as it deploys more AI and responds to declining customer calls. CEO Chris O’Shea says more than 90% of customers initially use digital channels and argues that staffing changes reflect customer behavior, while unions warn that technology is replacing human workers. Centrica’s retail profits rose to £346m in the first half despite British Gas domestic customers falling to 7.45 million, aided by a focus on higher-margin fixed-price tariffs. The company also faces up to £112m in compensation over forcibly installed prepayment meters.

Threats by Yemen’s Houthi movement against Saudi-linked shipping through the Bab al-Mandab Strait have caused tankers to turn back or reroute around Africa, raising transport costs and renewed fears of supply disruption. The threat is especially significant because the strait has become a key alternative route for Saudi crude while traffic through the Strait of Hormuz remains severely restricted after the breakdown of the US-Iran ceasefire. Brent crude has risen above $100 a barrel, while tighter refinery supplies are pushing up diesel and petrol prices and creating additional concerns about global gas availability ahead of winter.

Oil prices rose from $95 to above $100 a barrel as Houthi attacks on two Saudi tankers increased fears of disruption through the Red Sea, while tensions between the US and Iran continued to threaten flows through the Strait of Hormuz. Prices had previously peaked at $126 during the conflict before falling to $71 amid ceasefire hopes. Global shares declined, with the Nasdaq down more than 2% and Tesla falling 12% after weak profits. Investors also sold government bonds, pushing borrowing costs higher amid concerns that an oil-price surge could revive inflation and worsen economic pressures. The International Energy Agency’s Fatih Birol warned that the market remained vulnerable despite existing cushioning factors.

Legislative changes will allow UK retailers to sell plug‑in balcony solar panels from 27 August, offering renters and flat owners new opportunities to generate their own electricity. Major retailers plan to introduce systems expected to cost at least £400, potentially reducing annual energy bills by up to £110. Industry leaders say the move expands access to clean energy as global prices rise due to the war in Iran. Record rooftop solar installations last year underscore heightened consumer interest. The new rules may also pave the way for plug‑in home batteries, with proposals for government bulk purchases for low-income households. Advocates highlight benefits for energy independence while noting practical limitations such as seasonal output and the need for appropriate outdoor space.

Brent crude rose above $95 a barrel as renewed US-Iran fighting and Houthi threats disrupted shipping through the Strait of Hormuz and threatened routes through Bab el-Mandeb. Analysts warn prices could reach $120 by year-end if Hormuz remains closed, although emergency stock releases, alternative Gulf export routes, increased production elsewhere and weaker Chinese demand have cushioned the shock. Refined fuels remain tighter than crude, while gas supplies face further pressure before winter. Donald Trump and Iranian officials exchanged threats over attacks on shipping and infrastructure, and UN Secretary General António Guterres condemned strikes on civilian facilities.

Great Britain’s National Energy System Operator faced strain during June and July heatwaves as falling renewable output and rising electricity demand pushed the grid close to operational limits. Whistleblowers alleged senior managers attempted to suppress records and influence control room decisions to protect the organisation’s reputation, prompting Neso to commission an independent investigation. Grid frequency remained within statutory limits despite emergency measures, including increased imports from Europe and payments to reduce consumption. Former staff cited reputational pressures under both private and public ownership, while Neso leadership denied wrongdoing and emphasised established safeguards. The investigation’s findings will be shared with Ofgem and the UK government when completed.

Great Britain will remove the 5% VAT charged on household electricity for six months from 1 October, potentially reducing the annual price-cap bill for a typical household by about £45. The saving will apply to fixed and standard tariffs and will be greatest for high-electricity users, including households using electric heating, heat pumps and electric cars. Northern Ireland will retain its 5% VAT rate but is expected to receive funding for separate cost-of-living support. The measure may not lower bills overall if the October price cap rises, and critics say it is poorly targeted at low-income households that primarily heat with gas. Charities and advisers are calling for action on record energy debt, while thinktanks advocate broader reforms to reduce electricity costs over the long term.

Developers and researchers are testing alternative energy-storage technologies that could reduce dependence on lithium, cobalt and nickel. Highview Power’s Carrington project in Greater Manchester will store surplus renewable electricity as liquid air, while molten-salt systems in Nevada and Denmark store energy as high-temperature heat. Finland’s sand battery stores renewable power for local heating, and researchers in Japan are developing a wearable biofuel cell that generates electricity from human sweat. These technologies offer potentially long-lasting, recyclable ways to store renewable energy for grids, industry, heating and wearable devices, although some remain delayed or under development.

Plans under consideration by Andy Burnham would restructure gas charges and shift renewable energy levies to general taxation to cut average household energy bills by about £130 a year and make heat pumps cheaper to run than gas boilers. The proposals from the thinktank Nesta include reforming gas standing charges, reducing electricity VAT, and clearing consumer electricity debt. Most low-income households would see bills fall, with costs to be addressed in the autumn budget. Rising energy prices driven by Middle East conflict add urgency to potential reforms.

Independent investigators have been appointed to examine whistleblower allegations that senior figures at the National Energy System Operator discouraged record-keeping during June’s heatwave, allegedly to protect the organisation’s reputation despite heightened blackout risks. Data showed grid frequency falling below operational limits as high temperatures reduced renewable generation and disrupted gas plants while electricity demand surged. Claire Coutinho raised the claims in parliament, prompting scrutiny from the UK data watchdog. Neso maintains that the system stayed within statutory safety limits and has commissioned a full review, with findings to be published.

A large community-owned solar farm in Devon has been ordered to shut down for the summer after the energy system operator required a key transformer to be switched off to prevent voltage overload caused by high rooftop solar generation. The closure is expected to result in about £2m in lost revenue for nearly 10,000 cooperative members and has raised concerns over delayed grid upgrades that were originally planned for completion in 2025. The cooperative said members would face reduced payments, while national grid operators acknowledged curtailing generation to maintain system stability. Grid improvements are now expected by September, when the solar park is anticipated to restart.

EasyJet’s board signalled support for a £5.7bn all‑cash takeover offer from Apollo, overtaking a lower bid from Castlelake and triggering a competitive bidding process. European markets rose modestly, while Vodafone shares jumped after Xavier Niel acquired a 16% stake. Shein moved closer to a Hong Kong IPO following regulatory approval, and Meta faced EU warnings over addictive platform design risks under new content rules. Oil markets remained volatile amid shifting Middle East tensions and IEA forecasts of declining demand. UK regulators moved to classify major cloud providers as critical third parties, and the government prepared an initiative to retrain financial workers for AI‑related skills. High street footfall declined due to heatwave conditions, and Neso announced an internal review following allegations of operational record‑keeping failures.

The UK government approved a 20‑year extension for the Sizewell B nuclear plant, enabling it to operate until 2055 and support rising demand for low‑carbon electricity. EDF will receive a fixed price for power generation from 2035, with additional investment from Centrica. The decision aligns with broader government plans to expand nuclear capacity, including life extensions for other reactors, construction of Hinkley Point C and Sizewell C, and development of small modular reactors. The expansion complements large-scale renewable energy growth, including approval of the One Earth Solar Farm, as part of the government’s strategy to strengthen energy security and meet climate commitments.

US–Iran tensions escalated sharply as Donald Trump declared the ceasefire over and warned of imminent new strikes, following US attacks on Iranian targets in response to hits on commercial vessels in the strait of Hormuz. Iranian cities reported explosions while international bodies called for restraint amid thousands of stranded seafarers. Regional instability deepened with Israeli strikes in Lebanon, cancelled diplomatic visits, and rising oil prices driven by tanker attacks. Negotiations between Israel and Lebanon stalled over withdrawal demands, while rights groups highlighted abuses in Israeli detention. Trump hinted at a renewed blockade of Iranian ports and further military escalation as NATO leaders met in Ankara.

Oil prices surged nearly 6% after Iran attacked multiple tankers near the strait of Hormuz, prompting Donald Trump to declare the ceasefire with Iran over. The escalation halted tanker traffic, raised global energy prices and triggered sharp movements across financial markets, including higher UK gilt yields and a decline in the FTSE 100, though BP and Shell shares gained. Analysts noted that despite earlier expectations of major supply losses, alternative routes and emergency stocks have limited the net reduction in crude supply. Rising gas and oil prices now threaten higher household energy costs and fuel prices in Europe and the UK.

Andy Burnham is considering expanding public control over water and energy utilities, including potential nationalisation, amid growing criticism of private monopolies and the financial instability of companies such as Thames Water. Advisers argue that public ownership could reduce costs and improve accountability, though the government faces legal, financial and political barriers, including resistance from international investors and hedge-fund creditors. Options range from full nationalisation to enhanced regulation or hybrid models similar to Manchester’s bus system. Thames Water poses the most immediate challenge, with potential intervention through the special administration regime. In the energy sector, industry leaders warn against applying the same approach to successful investors needed for the UK’s net zero goals, emphasising the vast private funding required for grid upgrades and renewable projects. Burnham’s goals to reduce bills may conflict with the scale of investment needed to modernise infrastructure.

A rapid expansion of renewable energy approvals under Labour has not translated into equally fast delivery, leaving the UK at risk of missing its target of generating 95% zero‑carbon electricity by 2030. Grid connection delays, infrastructure bottlenecks and project complexity continue to slow progress despite reforms to approvals and connection queues. Analysts warn that real‑world risks make the target unlikely before 2035, though the energy system is still expected to undergo major decarbonization, reducing reliance on gas and increasing protection from price volatility. Experts emphasize that continued progress is essential for energy security, affordability and investment confidence, with developers and government stressing the importance of maintaining momentum on clean power deployment.

A consortium led by billionaire Michał Sołowow plans to invest £35bn to build 14 small modular nuclear reactors across the UK, aiming to power the equivalent of 8 million homes for more than six decades. Working with GE Vernova and Hitachi on the BWRX-300 design, the group seeks government support under a contracts‑for‑difference scheme and has applied to use the Oldbury site in Gloucestershire. The initiative aligns with the Labour government’s drive to expand nuclear power and support AI datacentres, placing the consortium in competition with Rolls‑Royce. A related proposal involving Google Cloud datacentre investments is under consideration. Industry leaders say the government’s updated nuclear framework has revitalized private-sector interest in nuclear development.

A rise in the UK energy price cap to the equivalent of £1,862 a year is set to push an estimated 13.5 million households into fuel poverty, with nearly 5.5 million spending about 20% of their income on energy. Campaign groups warn that rising summer costs will erode households’ ability to manage winter bills, while analysts expect prices to remain high into the colder months. The increases have intensified pressure on the government to address energy affordability, with unions calling for major price cuts and renationalisation, and political leaders proposing greater local control of energy services. Government officials cite policy cost reductions and expanded support schemes while monitoring conditions ahead of winter.

Revised forecasts from the National Energy System Operator indicate that upgrading Great Britain’s electricity transmission network through the 2030s could cost £89bn, a 50% increase linked to faster clean‑energy targets, new project rollouts and inflation. The Labour government’s accelerated 2030 clean‑power ambition is driving expanded grid investment plans, including 43 network projects and new links for Celtic Sea wind farms. Officials and industry leaders cite the need for clearer long-term signals and connections reform to support rising electricity demand from sectors such as data centres while ensuring system readiness and consumer value.

Energy bills in Great Britain will rise 13% from 1 July as Ofgem’s price cap increases to £1,862, coinciding with record household energy debt nearing £4.8bn. Rising wholesale gas prices linked to the war in Iran are driving costs higher, prompting pressure on the incoming government to implement relief measures. Energy suppliers and charities call for debt relief, market reform and decoupling electricity prices from gas. Proposals include shifting policy costs to general taxation, expanding the warm home discount and establishing a strategic gas reserve. The government highlights recent actions to reduce bills and accelerate the transition to domestic energy sources.

Record-breaking June temperatures across the UK intensified a Europe-wide heatwave, prompting red warnings, power supply concerns and pressure on health services. France, Belgium and Italy cancelled or restricted events, while Paris postponed its Pride march. Poland and the Balkans prepared for temperatures approaching 40C, raising wildfire and infrastructure risks. Experts linked the severity of conditions to human-caused climate change, noting disproportionate impacts on vulnerable and low-income communities. Non-uniform adaptation measures across cities and increased ozone pollution added to health pressures, as energy systems, transport networks and public services struggled with the extreme conditions.

Great Britain’s energy system operator warned of tight electricity margins during a severe heatwave and requested additional power generation to meet elevated demand from cooling. The operator secured costly electricity imports and paid above‑market rates to generators, particularly gas plants, after similar actions earlier in the week. High temperatures reduced output from several UK gas plants and caused unplanned outages at French nuclear facilities. EDF committed funds to cooling infrastructure for public institutions, while parts of central Europe implemented measures to limit electricity use during peak hours.

Regulators granted provisional approval for Great Britain’s first major hydropower developments in over four decades, with three pumped storage projects planned in northern Scotland to support energy security and renewable integration. Developers Statera Energy, SSE and Gilkes Energy will use local lochs as reservoirs, aiming for completion in the early 2030s. The projects join a wider set of 16 long-duration storage schemes, including battery and compressed air technologies, designed to stabilise electricity supply as renewable generation fluctuates. Government officials and Ofgem highlighted the role of these initiatives in reducing dependence on fossil fuels and strengthening energy resilience.

The Crown Estate reported £1.2bn in profit for the latest financial year, its third consecutive year above £1bn, driven largely by strong demand for offshore windfarm seabed leases. Wind developers paid £875m in option fees, though income from the sector declined as some projects moved into construction and switched to lower payments. The estate returned £487m to the Treasury, with £132.1m allocated to support the monarchy’s official duties. Chief executive Dan Labbad’s pay rose nearly 20% to £2.33m. Labbad noted that profits are likely to normalise as more projects progress and said a potential Reform UK government ending renewable subsidies would not halt industry growth, highlighting alternative revenue mechanisms and the long-term investment behind offshore wind expansion.

Great Britain’s grid operator prepared to spend around £10 million to activate gas plants and import additional electricity to meet an expected surge in demand caused by extreme heat and low wind generation. Prices reached up to £1,400 per megawatt-hour to secure 1.7 gigawatts of continental imports, allowing the operator to cancel an earlier warning of tight margins. Rising temperatures across Europe, reduced renewable and nuclear output, and increased use of cooling devices contributed to multiyear high electricity prices. The heatwave also disrupted transport, education and healthcare services, with unions urging workers to strike on the hottest day.

A heatwave pushed up electricity demand during England’s World Cup match, prompting Great Britain’s energy operator to pay nearly £4m to gas plants to meet shortfalls as solar generation dropped. Demand spikes at half-time and full-time triggered high-price power purchases, including increased imports from Europe. Low wind speeds and heat-related power plant outages further strained supplies as several nuclear and gas facilities across Europe reduced output. A supply warning was issued then withdrawn after securing additional imports.

A severe heatwave across Europe has driven electricity prices to multi‑year highs as soaring demand coincides with reduced power generation. Great Britain paid over six times last year’s average import price to meet peak demand due to low wind output and gas plant outages caused by extreme temperatures. Nuclear and wind generation across Europe also fell, contributing to sharp price spikes in Germany and France. The UK system operator secured additional imports and encouraged households to cut usage, while solar power remained steady despite high temperatures.

Record-breaking heat across Europe triggered widespread disruptions, with France experiencing its hottest day ever and reporting 40 heat-related drownings. Nearly half the country was placed under red heat alerts, prompting school closures and early shutdowns of major sites including the Eiffel Tower and the Louvre. In the UK, the Met Office projected temperatures up to 39C alongside unusually high humidity, leading to school closures, travel warnings and surging sales of cooling products. Spain and Italy issued their highest heat alerts as night-time temperatures remained unusually high. International organisations including the UN and IFRC warned that extreme heat poses severe health risks, particularly to vulnerable groups, as climate change continues to intensify heat events across Europe.

The drop in global oil and gas prices following the US-Iran peace deal has begun to ease UK fuel and grocery costs, though supply disruptions will keep pump prices relatively high for now. Energy bills are set to rise sharply in summer due to earlier wholesale price spikes, but lower gas costs should reduce winter rates. Mortgage markets, shaken by the war, are stabilising as expectations of further interest rate rises ease, with major lenders beginning to cut fixed-rate deals. Households are advised to secure competitive mortgage and energy deals proactively, while adoption of green home technologies such as solar installations continues to grow as a long-term cost‑saving measure.

A Financial Conduct Authority investigation into Drax’s sustainability reporting found no evidence of misleading statements about the sourcing of wood pellets for its North Yorkshire power plant. The decision follows earlier scrutiny, including a BBC documentary and an Ofgem finding of technical reporting failures, though without proof of deliberate wrongdoing or unsustainable fuel use. Drax has faced ongoing criticism from experts and campaigners over the environmental impact of burning biomass and has begun reducing reliance on Canadian wood pellets. Government policy will halve the company’s subsidies from 2027 and require fully sustainable sourcing, limiting the plant’s future role in the UK energy system.