Households in Great Britain will face the steepest summer rise in energy charges in four years after the energy price cap climbs by 13% from July 1. The average gas and electricity bill will increase to £1,862 a year, up from £1,641 in the current quarter, driven by soaring global market prices linked to the war in Iran.
Ofgem, the energy regulator, sets the cap based on wholesale market costs, which have surged due to the conflict. Under the new cap, electricity charges for direct debit customers will rise from 24.67p to 26.11p per kilowatt hour, while gas charges increase from 5.74p to 7.33p. The typical household will pay an extra £18 a month, or £221 a year.
Energy Secretary Ed Miliband called the rise “deeply unwelcome” and stressed the need to de-escalate the Middle East conflict to lower prices. He said: “The way to get bills down for good … is to go further and faster with this government’s drive for clean homegrown power.”
Ofgem’s interim chief executive, Tim Jarvis, attributed the cap rise “almost entirely” to higher global gas prices from the Iran war. He warned that the next quarterly change in October will depend on a peace deal and the reopening of the Strait of Hormuz, adding: “It is unfortunately now looking like a more long-term disruption.”
Unpaid energy bills have reached a record £4.5 billion, partly covered by a £52 annual charge on all bill payers. Jarvis advised households to consider fixing tariffs to protect against further rises, though this risks missing savings if prices fall.
