Households in Great Britain will see their energy bills rise by 13% from July, as the energy price cap increases to £1,862 per year for the average dual-fuel household. The rise, effective from July to September, is driven by soaring global energy prices linked to the conflict in Iran, according to Ofgem, the energy regulator.
The new cap represents an increase of £221 annually, or £18 per month, compared to the previous cap of £1,641 from April to June. This is the highest level since the first quarter of 2024, when the cap stood at £1,924. The cap peaked at £4,279 in early 2023, but government intervention limited bills to £2,500 at that time.
Energy Secretary Ed Miliband described the rise as "deeply unwelcome" and stressed the need to de-escalate the Middle East conflict to stabilise prices. He reiterated the government's commitment to expanding clean, homegrown energy to reduce reliance on volatile global markets.
Ofgem's interim chief executive, Tim Jarvis, attributed the increase "almost entirely" to higher global gas prices resulting from the Iran war. He warned that the outlook for winter remains uncertain, with prices likely to stay elevated depending on the duration of the conflict and the reopening of key shipping routes like the Strait of Hormuz.
Under the new cap, households paying by direct debit will see electricity charges rise from 24.67p to 26.11p per kilowatt hour, and gas charges from 5.74p to 7.33p per kWh. The cap also includes a daily standing charge. Ofgem noted that it updated typical consumption values based on reduced household usage during milder winters, but the methodology remains unchanged.
Unpaid energy bills have reached a record high of £4.5 billion, partly covered by a £52 annual charge on all bill payers. Jarvis advised consumers to consider fixing energy tariffs to protect against further price rises, though this carries the risk of missing out on potential savings if prices fall.
