U.K. — Ofgem is increasing the energy price cap by 13 percent on July 1, 2026. This adjustment will raise the annual energy bill for a typical household by £221, bringing it to £1,862.

The electricity unit rate for direct debit customers will increase from 24.67 pence per kilowatt hour to 26.11 pence per kilowatt hour. For gas, the unit rate for direct debit customers will rise from 5.74 pence per kilowatt hour to 7.33 pence per kilowatt hour. Tim Jarvis, chief executive of Ofgem, said, "Today's price change reflects continued volatility in global energy markets." Jarvis added, "This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy."

Households on standard tariffs without smart meters, approximately 5.3 million, risk being charged the new higher rates for June usage if they do not submit meter readings before the July 1 effective date. Ben Gallizzi, an energy expert at Uswitch, said, "Customers who don't have a smart meter should submit their readings before or on Wednesday 1 July, so their supplier has an accurate view of their account." Energy Secretary Ed Miliband commented on the rise, saying, "The rise in the price cap because of a war we did not choose is deeply unwelcome news for households across the country." He also suggested a path for future stability, stating, "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."

Gallizzi noted there are currently 27 fixed deals available that are cheaper than July's price cap. Consumer finance expert Martin Lewis, who is excluded from direct quotation per editorial guidelines, urged households to take photos of their energy meters before the new price cap takes effect.

Why It Matters

The upcoming increase in the energy price cap will affect millions of households financially, raising typical annual energy bills by £221. This adjustment is attributed to global market volatility and elevated wholesale gas prices influenced by the conflict in the Middle East. The advice to submit meter readings represents a practical step consumers can take to manage their bills during this transition.