Households in Great Britain will face the steepest summer rise in energy charges in four years after Ofgem announced a 13% increase in the energy price cap for July to September. The average annual dual-fuel bill will rise to £1,862, up from £1,641 in the previous quarter, driven by soaring global gas prices linked to the war in Iran.
Energy Secretary Ed Miliband described the increase as "deeply unwelcome" and called for de-escalation in the Middle East to lower oil and gas prices. He stressed the need to accelerate the transition to clean, homegrown power to avoid future price spikes.
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 increase equates to an extra £18 per month for the average household. Ofgem noted that typical consumption values have been updated due to lower energy use over recent milder winters.
Ofgem interim chief executive Tim Jarvis attributed the rise "almost entirely" to higher global gas prices resulting from the Middle East conflict. He warned that the next quarterly cap change in October will depend on the duration of the disruption, with elevated prices expected through winter.
Unpaid energy bills have reached a record £4.5 billion, partly recovered through an annual £52 charge included in the cap. Jarvis advised consumers to consider fixing energy tariffs to protect against further rises, though this carries the risk of missing out on savings if prices fall.
