British households are grappling with soaring energy prices, with the energy price cap set to rise by 4% from October, following a 13% increase in July. This means an average annual bill of £1,723 for gas and electricity, up from £1,663, and is forecast to climb further to £1,872 by January. These increases are driven by rising global energy market prices, partly attributed to the war on Iran, and are making it increasingly difficult for people to afford to cool their homes during summer heatwaves.
The rising costs are exacerbating fuel poverty, with the Centre for Sustainable Energy warning that the fuel poverty rate could increase to 25-29% under the LILEE definition or 44-52% under the 10% definition in more extreme scenarios. Total energy debt has reached £4.79 billion in the first quarter of 2026, with £3.6 billion in arrears without repayment arrangements, preventing vulnerable households from affording basic comfort measures like fans. There is a growing demand for policy changes to include safe summer temperatures in fuel poverty measurements, provide targeted bill support for essential cooling, and promote retrofits that prevent overheating.
The sweltering conditions have led to a surge in demand for various cooling products. Sales of fans have skyrocketed, with one online retailer reporting a 2,500% increase during June’s heatwave. Portable air conditioning units have also been in high demand, with some batches selling out within minutes, and installations of permanent units facing lengthy waits due to low stocks. Heat pump sales are also jumping as consumers seek alternatives to high fossil fuel prices. Additionally, the heatwave has boosted sales of summer clothing, with fashion giant Next upgrading its annual profit forecast after a 9.2% jump in takings.
The energy infrastructure is also under strain. National Grid has warned that record electricity demand during the heatwave is pushing peak loads toward 30 gigawatts in the south, forcing the system to tap reserve capacity and causing consumers to face higher tariffs. Reduced solar efficiency due to high panel temperatures is also forcing a greater reliance on fossil fuel plants, undermining net-zero targets. Prolonged heat could drive spot prices above £200 per megawatt hour this summer.
