The energy price cap is set to increase by 13 per cent from 1 July, adding more than £200 a year to typical household bills, Ofgem has announced. The rise, driven by ongoing conflict in the Middle East, will affect millions of households in England, Scotland, and Wales.
Price Cap Increase Details
Ofgem’s new price cap will mean an additional £18 per month – or £216 per year – for an average household using both electricity and gas, if sustained over twelve months. The current cap for a typical household paying by direct debit stands at £1,641.
Ofgem chief executive Tim Jarvis stated that the change “reflects continued volatility in global energy markets,” which has been exacerbated by the war in the Middle East, particularly the conflict involving Iran.
This increase is expected to place further financial strain on households already grappling with high living costs. Consumer groups have urged the government to provide additional support for vulnerable customers.
Broader Impact on Households
The rise comes as many families face higher costs across other essentials. Energy experts warn that bills may remain elevated if geopolitical tensions persist. The announcement follows a period of relative stability in energy prices, but the recent surge in wholesale gas and electricity prices has forced Ofgem to adjust the cap upward.
Households are advised to review their energy tariffs and consider switching suppliers or improving home insulation to mitigate the impact. The government has been called upon to expand the Warm Home Discount and other assistance schemes.
