Ofgem lifts UK energy price cap 13% adding £221 to bills

Millions of households across Great Britain are facing a significant increase in their energy bills from Wednesday, July 1, as the regulator Ofgem raises its price cap by 13 percent. The change will add approximately £221 to the average annual dual-fuel bill, pushing the typical cost to £1,862.

The rise is driven by higher wholesale gas prices, which spiked earlier this year due to geopolitical tensions in the Middle East. A conflict involving the U.S., Israel, and Iran led to a blockade of the Strait of Hormuz, a crucial shipping route for global oil and gas. While a 60-day ceasefire has since provided some market stability and allowed the route to begin reopening, analysts warn the situation remains fragile and its effects on prices are enduring.

Consumer advocates and officials are urging immediate action from the estimated 5.3 million households on standard variable tariffs who do not have a smart meter. They are advised to submit a meter reading by the end of Tuesday, June 30, to ensure energy used before the price hike is billed at the lower rate. Suppliers allow readings to be uploaded and backdated within a few days, and taking a photograph of the meter is recommended as...