Households in Great Britain will face the steepest summer rise in energy charges in four years after the energy price cap climbs by 13% from July. The average gas and electricity bill will increase to £1,862 a year, up from £1,641, driven by soaring global market prices linked to the war in Iran.
The energy regulator Ofgem sets the cap based on wholesale costs, which have surged due to the conflict. Under the new cap, electricity charges for direct debit customers will rise from 24.67p to 26.11p per kilowatt hour, while gas charges increase from 5.74p to 7.33p. The typical household will pay an extra £18 a month, or £221 a year.
Energy Secretary Ed Miliband described the rise as “deeply unwelcome” and stressed the need to de-escalate the Middle East conflict. He called for faster investment in clean, homegrown power to reduce dependence on volatile global markets. Ofgem’s interim chief executive Tim Jarvis said the increase was “almost entirely driven” by higher global gas prices resulting from the war.
The cap is now at its highest level since the first quarter of 2024, when it was £1,924, but remains well below the peak of £4,279 in early 2023, which was mitigated by the government’s energy price guarantee. Ofgem also updated typical consumption values, reflecting lower household energy use during recent milder winters.
Looking ahead, Jarvis warned that autumn and winter bills could rise further depending on the duration of the conflict and the reopening of the Strait of Hormuz. He advised customers to consider fixing energy tariffs to protect against potential increases, though this carries the risk of missing out on savings if prices fall. Unpaid energy debts have already reached a record £4.5 billion, partly recovered through an annual £52 charge in the cap.
