Household energy prices 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's Statement on Price Cap Rise
Ofgem chief executive Tim Jarvis said: "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." He added that while energy use typically falls over summer, households can manage costs by exploring fixed tariffs, changing payment methods, or using smart meters to access cheaper electricity at weekends.
Government Response
Energy Secretary Ed Miliband described the rise as "deeply unwelcome news" and emphasised the government's priority to ease the burden. He stated: "We will continue to monitor the situation ahead of the winter and plan for all contingencies. The way to get bills down for good is to go further and faster with this government's drive for clean homegrown power."
Industry and Consumer Views
Ned Hammond of Energy UK expressed concern over the scale of the rise, urging the government to target support for vulnerable customers. Gillian Cooper of Citizens Advice highlighted the need for the energy debt relief scheme to be implemented quickly, and called for better targeted support for families, disabled people, and those struggling with rent.
The price cap applies to default tariffs, affecting customers without a fixed-rate deal. Currently, 40% of accounts (22 million) are on fixed tariffs and are unaffected by this rise.
