Energy Bills to Rise 13% from July as Ofgem Raises Price Cap
The energy regulator announced on 27 May that the typical household will pay £1,862 annually from 1 July, up £221 from the current cap, driven by Middle East conflict pushing up gas prices.
Ofgem announced on 27 May a 13% increase of the energy price cap for the period covering 1 July to 30 September 2026. For a typical household who use electricity and gas and pay by Direct Debit, the cap will be £1,862, up from £1,641 in the current quarter.
This increase is a result of higher wholesale gas prices, caused by the ongoing conflict in the Middle East. Wholesale prices increased sharply in February and March after conflict damaged energy infrastructure and disrupted oil and gas supply through the Strait of Hormuz, a key global trade route.
The impact on your bill
Customers will see a smaller price increase of around 5% on their electricity bills compared to gas bills which are rising by 24%. If you pay for electricity by Direct Debit on a standard variable tariff, you will pay on average 26.11 pence per kWh, with a daily standing charge of 57.19 pence per day. For gas, the average rate is 7.33 pence per kWh with a standing charge of 29.04 pence per day.
Currently, 40% (22 million) of accounts are on fixed tariffs and are therefore unaffected by this price rise. If you're on a variable tariff, your energy supplier will automatically adjust your Direct Debit from 1 July.
What you can do
If you're moving to the UK or already here on a visa, now is a good time to review your energy deal. MoneySavingExpert.com founder Martin Lewis says there's a way for most people to avoid the increase by switching to a fixed-rate tariff before 1 July. Check comparison sites for deals that lock in current lower rates—some fixed tariffs are still cheaper than the new cap. If you rent and your landlord pays the bills, factor this £18-per-month increase into your budgeting, as landlords may adjust rent accordingly when leases renew.
Sources
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