UK energy bills confirmed to rise by 13% from July
Ofgem has today confirmed that the energy price cap will increase by 13% for the period from 1 July to 30 September. This is the largest percentage increase of the price cap since 2024.
For an average usage customer on a standard variable tariff paying by Direct Debit, this means an annual energy bill would increase from £1,641 to £1,862 per year.
This is the first indication of the effect the war in the Middle East, which has caused wholesale energy prices to spike, is having on UK energy prices.
Why is the price cap going up?
The war in the Middle East has closed a key part of the global gas pipeline in the Strait of Hormuz. Supply delays and interruptions have therefore caused wholesale gas prices to go up, which means overall energy prices in the UK have increased because the price of gas usually determines the price of electricity.
The current price cap came into effect on 1 April, which is after the war began, but it had been locked in before the war started, so it was still priced relatively low.
What will the new price cap unit rates and standing charges be?
From 1 July to 30 September, the price cap average unit rates and standing charges will be as follows.
| Electricity | Gas | |
|---|---|---|
| Unit rates | 26.11p per kWh | 7.33p per kWh |
| Standing charges | 57.19p per day | 29.04p per day |
What should customers do?
Customers who are affected by this price cap increase - those on standard variable tariffs - don’t have to accept it. It depends on your current situation, but there are actions you can take today rather than waiting until the cap comes into effect in July.
If you’re on a standard variable tariff…
…you should be looking to switch to a fixed deal if you can find one that offers savings against the new price cap level of £1,862. Not only will you pay lower unit rates than those set by the price cap, but you’ll also protect yourself going into the winter, when energy usage naturally increases and with the price cap likely to stay around this level or higher.
If you’re on a fixed deal with less than 49 days left…
…you should be preparing to switch to another fixed deal because you can do so without incurring any exit fees. Fixing your deal again will mean you don't get rolled onto your supplier's standard variable tariff, which will be priced at the level of the price cap.
If you’re on a fixed deal with more than 49 days left…
…you can switch to another fixed deal if you can find one priced significantly less than the one you’re currently on. The savings would need to be significant because you’ll probably have to pay exit fees, so those need to be factored into your overall calculations.
Run an energy comparison
Click here to compare energy prices and get started on your energy switch.
For the most accurate long-term view of your costs and savings, you can also compare deals with predicted July changes already factored in - you can't do this anywhere else.
Is there any government support available?
There isn’t currently any government support available to help mitigate the effects of this price rise. However, some targeted support for the most vulnerable households might be available in the autumn if prices remain high, because energy usage will also naturally rise during this period.
Richard Neudegg, director of regulation at Uswitch.com, said: “July's serious price rise is the biggest jump we have seen in years, but the real concern is what comes next.
“Millions of households will soon see their energy rates rocket. With prices forecast to stay high, the real pain will come when the heating goes back on in the autumn and through winter.
“Households are on a standard variable tariff by default – so if you haven't switched, your rates will go up in July unless you take a good fixed deal.
"No one wants to think about winter during hot weather, but fixing your energy deal now means you can opt out of these rises entirely.
“Households can currently lock in a rate that undercuts the July cap by around £250 for the average home. For anyone still on a standard tariff, your bill will go up unless you act.”