Typical energy bills will increase by roughly £200 from July 1 following a 13% rise in the price cap, regulator Ofgem has announced. The increase is attributed to higher wholesale gas prices driven by ongoing conflict in the Middle East.
Ofgem chief executive Tim Jarvis said the price change reflects continued volatility in global energy markets. He noted that while energy use typically falls over summer, households can take steps to manage costs, such as exploring fixed tariffs or changing payment methods.
Gas bills are expected to rise by 24%, while electricity bills will increase by around 5%. For a typical dual-fuel household paying by direct debit, the current price cap of £1,641 will rise by £18 per month.
Treasury minister Dan Tomlinson blamed US President Donald Trump's foreign policy for the higher bills, stating, “We are seeing the impact of the Iran conflict, a war that we didn't start and didn't want to get the UK wrapped up in.” He acknowledged this would affect the cost of living but said the government is taking action to support people.
The crisis has deepened as Iran effectively closed the Strait of Hormuz, a key route for oil and liquefied natural gas. Trump has claimed the strait is about to reopen, but Iran demands a levy for passage through it.
