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Energy Price Cap Rises by £200
The energy price cap in Great Britain will rise by 13% from July, the regulator Ofgem has announced this morning. It means households will face the steepest summer rise in energy charges in four years after months of soaring market prices.
Under the cap, the average gas and electricity bill will increase to the equivalent of £1,862 a year (up from £1,641) from July until the end of September to take account of the rise in global energy market prices caused by the war on Iran.
The energy regulator for Great Britain, Ofgem, determines the maximum a supplier can charge for each unit of gas and electricity based on the cost of supplying energy to homes, including the average wholesale market costs in the months leading up to the start of each new cap. The cap also incorporates the maximum daily standing charge, the flat daily fees levied for a connection regardless of how much or little energy people use.
Ofgem CEO Comments
Tim Jarvis, Ofgem CEO, 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. We understand many will be concerned about rising prices. While energy use typically falls over the summer months, there are still practical steps households can take to manage costs, including exploring fixed tariffs or changing their payment method. Smart meter customers can also take advantage of half price or cheap electricity at the weekends. 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."
Agenda
- 5am BST: European car sales data for April
- 7am BST: Ofgem price cap for 1 July to 30 September
- 5pm BST: Deadline for any legal challenge of FCA motor finance compensation to be filed
