Energy price cap in Great Britain to rise by 13% from July

The energy price cap for Great Britain increases by 13% for the period from July to the end of September. The average gas and electricity bill under the cap rises to the equivalent of £1,862 a year, up from £1,641 a year in April to June. The increase is linked to higher global energy market prices attributed to the war on Iran. The energy secretary says de-escalation is essential to reduce oil and gas prices. Ofgem sets the cap based on the cost of supplying energy to homes, including average wholesale market costs, and it also includes a maximum daily standing charge. Direct debit electricity rates rise from 24.67p to 26.11p per kWh, and gas rates rise from 5.74p to 7.33p per kWh. The £1,862 level is the highest since the first quarter of 2024.

"Households will face the steepest summer rise in energy charges in four years after months of soaring market prices caused the government's energy price cap for Great Britain to climb by 13%. Under the cap the average gas and electricity bill will increase to the equivalent of 1,862 a year from July until the end of September to take account of the rise in global energy market prices caused by the war on Iran, up from 1,641 a year in April to June."

"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 (flat fees levied for a connection regardless of how much energy people use)."

"Under the new energy price cap, households that pay via direct debit will see electricity charges rise from the current rate of 24.67p a kilowatt hour to 26.11p, while gas charges will rise from 5.74p a kWh to 7.33p. The jump to 1,862 a year equates to a rise of 18 a month for the average household using electricity and gas, or 221 a year."

"Ed Miliband, the energy secretary, said it was essential to de-escalate the conflict in the Middle East to bring oil and gas prices down. The rise in the price cap because of a war we did not choose is deeply unwelcome news for households across the country The way to get bills down for good and avoid these price spikes is to go further and faster with this government's drive for clean homegrown power we control, he said."

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