UK households face having to spend more on bills this summer when the energy price cap goes up by 13%.
People face a tough winter with costlier energy bills on the way, driven by the impact of the Iran war hampering the fuel markets.
Now Ofgem, Britain’s energy watchdog, has announced the price cap will rise by 13% from July.
For consumers, this will mean a rise of around £18 a month for an average household using electricity and gas.
Here is a roundup of what the energy price cap change means.
When is the energy price cap going up?
Ofgem, which sets the limit that regulates how much companies can charge people, said the price cap will rise from July 1.
Gas bills will increase by 24% and electricity bills by 5% for an average household.
In April, households saw some respite from costs after the energy price cap saw around £117 being shaved off bills.
However, the cap is reset and updated every three months, and it is influenced by global affairs and crises, which have a knock-on effect on supply and prices like fuel and natural gas.
The blockade and uncertainty around the Strait of Hormuz in the Gulf has seen fuel and liquid natural gas prices skyrocket, leading to fears over supplies running out.
Ofgem chief executive Tim Jarvis said: ‘Today’s price change reflects continued volatility in global energy markets. This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy.
Are you struggling to afford your bills?
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Yes, and regularly
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‘We understand many will be concerned about rising prices. While energy use typically falls over the summer months, there are still practical steps households can take to manage costs, including exploring fixed tariffs or changing their payment method. Smart meter customers can also take advantage of half price or cheap electricity at the weekends.
‘While our energy supplies remain secure, the best way to limit this exposure is by investing in our energy network. That’s why we’re unlocking the funding needed for the biggest transformation of our lifetime to deliver a system that is secure, resilient and works for consumers across Great Britain.’
Martin Lewis, from the Money Saving Expert, explained on his BBC podcast what the energy price cap changes mean: ‘That 7% drop in bills is factored in permanently to bills.
‘The July hike is going to be about 13%.
‘But had the government not made those policy changes in April it would have been another roughly 7% higher.
‘The price came down in April. It’s going up by 13%. It would have still gone up by 13%, but it would have been off a higher basis, because the April price would have been higher if we hadn’t had those changes.’
What is the energy price cap?
The energy price cap is a regulatory limit on the maximum amount energy suppliers can charge customers for their energy usage.
It was introduced by Ofgem in January 2019 to protect consumers, particularly those on standard variable tariffs, from excessively high energy prices.
The cap, which is reviewed every three months, limits the amount that suppliers can charge for each unit of gas and electricity, as well as the daily standing charge that customers pay to have their homes connected to the energy grid.
It applies to the majority of households in England, Scotland, and Wales that are on standard variable or default tariffs.
Reaction to the energy price cap rise
Ed Miliband, the Energy Secretary, said the increase ‘because of a war we did not choose is deeply unwelcome news for households.’
He said: ‘We will continue to monitor the situation ahead of the winter and plan for all contingencies. In the immediate term it is essential to de-escalate this conflict to bring oil and gas prices down and as Britain faces the second fossil fuel crisis of this decade, we must learn the right lessons.’
Simon Francis, a coordinator with the End Fuel Poverty Coalition, said: ‘Behind every energy price rise are households whose direct debits are about to rise, families whose energy debt is harder to clear, and pensioners whose summer is already overshadowed by the winter ahead. Meanwhile, the energy industry has posted more than £3 billion in profits from its UK operations in the first three months of 2026.
‘With energy costs rising over the summer, any chance households had to reduce energy debts or build up reserves before the winter heating season will be wiped out.
‘We are also worried that energy firms will now factor higher costs into direct debit calculations, meaning many households will feel the financial impact of winter long before October.’
Energy providers have raised the alarm over the UK’s ‘out of control’ energy debt, which could see bills rise by an additional £75 for around five million households.
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