Ofgem Confirms July Increase
Energy regulator Ofgem has announced a 13% increase in the energy price cap for the period from 1 July to 30 September 2026.
The increase reflects higher wholesale gas prices linked to the ongoing conflict in the Middle East, which has continued to create volatility across global energy markets.
What The Price Cap Means
The price cap applies to default tariffs for customers who have not signed up for a fixed-rate energy deal.
It sets the maximum rate per unit of gas and electricity, as well as the standing charge, that suppliers can bill customers for their energy use. It does not cap a household’s total bill, which still depends on how much energy is consumed.
Typical Bills Set To Rise
The current price cap for a typical household paying by direct debit for gas and electricity is £1,641.
Under the existing typical consumption values, the cap from July would rise to £1,862. That represents an increase of around £18 per month for the average household using both gas and electricity if that level were sustained for a full year.
Updated Consumption Data Changes The Headline Figure
Ofgem is also updating its Typical Domestic Consumption Values, which are used to estimate average household energy use.
The updated figures reflect the fact that households are now using less energy than before, around 7% less electricity and 17% less gas compared with the previous review. Based on these updated values, the July price cap level will be £1,663 per year.
Gas Prices Rise More Than Electricity
From July, electricity prices are expected to rise by less than gas prices. Customers will see an increase of around 5% on electricity bills, compared with a 24% rise in gas bills.
Ofgem said this reflects the growing role of renewable generation in the electricity system, which has reduced reliance on gas for power generation compared with the energy crisis period.
Fixed Tariff Customers Are Protected
About 40% of energy accounts, or roughly 22 million, are currently on fixed tariffs and will not be affected by this price cap increase.
Customers on default tariffs, however, will be exposed to the new rates unless they switch to another tariff or agree a fixed deal with their supplier.
Ofgem Points To Global Market Volatility
Ofgem chief executive Tim Jarvis said the price change reflects continued volatility in global energy markets.
He said higher wholesale gas prices, driven by conflict in the Middle East, are feeding through into the price paid for energy in Great Britain. While supplies remain secure, Ofgem argues that investment in the energy network is needed to reduce long-term exposure to global shocks.
Ways Customers Can Cut Bills
Ofgem said households can take practical steps to manage costs, including exploring fixed tariffs or changing payment methods.
Moving from standard credit to direct debit could save some customers around £143 on their bills. Smart meter customers may also be able to access offers such as half-price or lower-cost electricity at weekends.
Support For Struggling Households
The regulator urged anyone struggling with bills to contact their supplier as soon as possible.
Suppliers are required to support customers who are having difficulty paying. That support can include tailored repayment plans, financial assistance routes and debt advice to help households avoid falling further behind.
Energy Costs Remain A Political Pressure Point
Although prices remain well below the peak of the 2022 energy crisis, when the government stepped in to cap bills at £2,500, the latest increase will still concern many households.
The July rise shows that UK energy bills remain exposed to global gas market shocks. For consumers, the key questions now are whether fixed tariffs offer better protection, whether lower summer usage softens the impact and whether further market volatility pushes prices higher again later in the year.
