Ofgem raises UK energy cap 13% in July, bills up £221

Millions of households in Great Britain will see their energy bills rise significantly from July after the regulator Ofgem announced a 13 percent increase to its price cap. The change means a typical annual dual-fuel bill for a customer paying by direct debit will increase by £221, from £1,641 to £1,862, effective from July 1 until September 30.

Ofgem chief executive Tim Jarvis said the price change reflects continued volatility in global energy markets, attributing the rise to higher wholesale gas prices driven by ongoing conflict in the Middle East. The disruption has severely impacted the Strait of Hormuz, a crucial shipping route for global oil and gas supplies. The increase is the steepest single jump since the height of the energy crisis in 2022.

The rise is not evenly distributed across fuel types. Electricity bills will see an increase of around 5 percent, while gas bills are set to jump by 24 percent. Officials noted this disparity reflects a reduced reliance on gas for electricity generation due to increased renewable energy on the grid.

The price cap sets the maximum unit rates and standing charges suppliers can levy for customers on default variable tariffs, affecting...