𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The energy price cap will rise by 13 per cent from 1 July for a typical household in England, Scotland and Wales, Ofgem has said.

Based on the energy use of a typical domestic household, from July the price cap will rise by £18 a month for the average household using both electricity and gas if this level was sustained for a year.

This means a household using a typical amount of energy will pay £221 more a year. The current price cap for a typical household paying by direct debit for gas and electricity is £1,641.

The price cap was introduced in 2019, initially at £1,137 per year.

Ofgem chief executive Tim Jarvis said: “Today’s price change reflects continued volatility in global energy markets. This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy. We understand many will be concerned about rising prices.

“While energy use typically falls over the summer months, there are still practical steps households can take to manage costs, including exploring fixed tariffs or changing their payment method. Smart meter customers can also take advantage of half price or cheap electricity at the weekends.

“While our energy supplies remain secure, the best way to limit this exposure is by investing in our energy network. That’s why we’re unlocking the funding needed for the biggest transformation of our lifetime to deliver a system that is secure, resilient and works for consumers across Great Britain.”

Dan Tremain, energy expert at the Compare the Market, encouraged households to search online for the best fixed deal they can get, as that will often lead to either cheaper overall bills or, at least, certainty in the face of potential future rises. “The upcoming energy price cap rise is likely to increase bills for households on standard variable tariffs from July, while those on fixed deals may be less directly affected,” he said.

“As suppliers price fixed tariffs independently, it’s worth comparing current offers against the new cap and reviewing whether switching could provide better value or price certainty. Checking you’re on the right tariff may help limit the overall impact.”

The price cap refers to the default tariff applied when a customer has not signed for a fixed-rate deal. It sets a maximum price per unit of gas and electricity, meaning households only pay for the amount of energy they use.

Currently, 40 per cent of accounts – or 22 million – are fixed tariffs, according to Ofgem figures, and are therefore unaffected by this price rise.

Gillian Cooper, director of energy at Citizens Advice, said: “Energy bills are going up again in July, which will be painful news for already-stretched households.

“One of the key tools to help people through this – the energy debt relief scheme – keeps being delayed.

“The scheme should be supporting people struggling with historic energy debt right now and the Government needs to put it in place as soon as possible. And as we head into the summer, the Government must use this time to prepare wisely, ahead of autumn.

“Families with children, disabled people and those struggling to pay rent need better targeted support in place before it’s too late.”

Jess Ralston, energy analyst at the Energy and Climate Intelligence Unit (ECIU), called again for a sustained push to renewables into the UK energy mix and net zero technologies in homes.

“Bills rising once again shows just how exposed British households are to volatile international gas markets which set the price we pay in the UK. When conflict drives up fossil fuel prices – whether it’s in Ukraine or now conflict with Iran – it’s families here who end up footing the bill,” she said.

“Here in the UK, more and more households are already trying to shield themselves from that volatility – installing net zero technologies like rooftop solar, batteries, and switching to electric vehicles to take control of their energy.

“Renewables are starting to insulate wholesale electricity prices from these spikes, but unless we make the shift to electric heat pumps, British homes will become ever more dependent on foreign imports to try to keep warm in winter.”

Simon Francis, coordinator of End Fuel Poverty Coalition, said: “Behind every energy price rise are households whose direct debits are about to rise, families whose energy debt is harder to clear, and pensioners whose summer is already overshadowed by the winter ahead.

“Meanwhile, the energy industry has posted more than £3 billion in profits from its UK operations in the first three months of 2026. With energy costs rising over the summer, any chance households had to reduce energy debts or build up reserves before the winter heating season will be wiped out.

“We are also worried that energy firms will now factor higher costs into direct debit calculations, meaning many households will feel the financial impact of winter long before October.

“That concern is sharpened by forecasts suggesting the October cap could remain at a similar level, leaving millions of households facing an extremely difficult year ahead if nothing changes. This summer will also bring its own pressures.

“With the vast majority of existing homes at risk of overheating in extreme heat events, and the poorest neighbourhoods seven times more likely to be vulnerable, households will need to run fans and cooling equipment exactly when their bills are rising.

“The government cannot wait until September to act. It must confirm what support will be available, address the fact that relying on gas for heating is a dead end as the North Sea runs dry and chart a path for households to find a permanent way off the gas price rollercoaster.”

Energy secretary Ed Miliband said: “The rise in the price cap because of a war we did not choose is deeply unwelcome news for households across the country. We know people were under pressure before this crisis, and that’s why easing that burden is our number one priority.

“We will continue to monitor the situation ahead of the winter and plan for all contingencies. In the immediate term it is essential to de-escalate this conflict to bring oil and gas prices down and as Britain faces the second fossil fuel crisis of this decade, we must learn the right lessons.

“The way to get bills down for good and avoid these price spikes is to go further and faster with this government’s drive for clean homegrown power we control. We are upgrading as many homes as possible ahead of winter with the biggest investment in warm homes in British history.”

Ofgem’s next price cap announcement will come on 26 August, covering bills for the period 1 October to 31 December 2026.

Additional reporting by PA