Will increasing oil prices lead to increasing domestic energy bills this winter?

What_time_is_it

Forgive my ignorance, but how likely is it that the recent increases in global oil prices will lead to an increase in domestic energy bills this winter?
Will it feed into the Ofgem Price Cap for Jan-Mar 2024? Or is that too short a timeframe?
Does it even make much of a difference?

Andreg

Yes oil prices affect gas prices, and gas prices affect electricity prices.

Scot_39

Probably yes.

As gas tends to track oil in the longer term.

And we still generate near 40% of electric from it on average over last year.

But gas prices are still nowhere near last years highs last time looked.

And other sources are costing more than gas currently - like renewables sold in early (2015 on)  auctions on wholesale CfDs upto 12p at 2012 baseline plus inflation indexing.  Which are once again adding to current Ofgem cap costs.

QrizB

What_time_is_it said:

Forgive my ignorance, but how likely is it that the recent increases in global oil prices will lead to an increase in domestic energy bills this winter?

Only indirectly, by influencing the demand for natural gas. As others have stated, the UK doesn't burn an appreciable amount of oil to generate electricity.

If you are off the gas grid and have an oil-fired boiler, the effect will be more direct.

What_time_is_it said:

Will it feed into the Ofgem Price Cap for Jan-Mar 2024? Or is that too short a timeframe?
Does it even make much of a difference?

I suspect it's too late for rising oil prices to have a big influence on the January cap. April's cap might show more effects.