Households in Great Britain will face a 13% increase in energy bills from July, with the average annual dual-fuel bill rising to £1,862, according to Ofgem. The rise, the steepest summer increase in four years, is driven by soaring global energy prices linked to the conflict in Iran.
The energy price cap, which sets the maximum unit rates for gas and electricity, will see electricity charges rise from 24.67p to 26.11p per kilowatt hour, and gas from 5.74p to 7.33p. This equates to an extra £18 per month or £221 per year for the average household.
Energy Secretary Ed Miliband described the increase as “deeply unwelcome” and called for de-escalation of the Middle East conflict to stabilise prices. He emphasised the need for a faster transition to clean, homegrown power to avoid future price spikes.
Ofgem’s interim chief executive Tim Jarvis attributed the cap rise “almost entirely” to higher global gas prices resulting from the Iran war. He warned that the next quarterly cap change in October will depend on the duration of the conflict and market recovery, noting that elevated prices are likely to persist into winter.
The rise compounds record energy debt, which reached £4.5bn earlier this year. Jarvis advised consumers to consider fixing tariffs to protect against further increases, though this carries the risk of missing out on potential savings if prices fall.
