Household energy bills are set to increase by 13% from July 1, as Ofgem announces a rise in the price cap driven by ongoing conflict in the Middle East. The average household using both electricity and gas will see an increase of approximately £18 per month, equating to a 24% rise in gas bills and a 5% rise in electricity bills.
Ofgem Announces Price Cap Increase
The energy regulator confirmed that the price cap will rise by 13% from July 1, reflecting continued volatility in global energy markets. Ofgem chief executive Tim Jarvis stated: "Today's price change reflects continued volatility in global energy markets. This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy."
Impact on Households
The increase will add £18 per month to the average dual-fuel household bill. While energy use typically falls over the summer months, many households may still feel the pinch. Jarvis acknowledged concerns: "We understand many will be concerned about rising prices."
Practical Steps to Manage Costs
Ofgem advises households to take practical steps to manage costs, including exploring fixed tariffs or changing payment methods. Smart meter customers can take advantage of half-price or cheap electricity at the weekends. Jarvis added: "While our energy supplies remain secure, the best way to limit this exposure is by investing in our energy network. That’s why we’re unlocking the funding needed for the biggest transformation of our lifetime to deliver a system that is secure, resilient and works for consumers across Great Britain."
Background and Context
The price cap rise is driven by higher wholesale gas prices, which have been exacerbated by the ongoing conflict in the Middle East. The conflict has created uncertainty in global energy markets, leading to increased costs for suppliers, which are passed on to consumers through the price cap mechanism.
Future Outlook
Ofgem continues to monitor the situation and may adjust the cap further in response to market conditions. Households are encouraged to seek advice from energy suppliers or independent advisors to find the best deals and manage their energy consumption effectively.
