By Clare Yates
4 min read
Snapshot of the changes
The average household energy bill will rise to £1,862 a year, for the period July-September.
This is about £221 more a year, or roughly £18 a month.
The price cap has gone up by 13% compared with the previous quarter.
Gas and electricity unit prices will both increase under the new cap.
This is the biggest summer rise in around four years.
The increase is being driven by higher global energy costs linked to disruption in the Middle East.
Why are energy bills going up?
Ofgem sets the energy price cap, which limits how much suppliers can charge for gas and electricity. It’s updated every three months and is based on the cost of supplying energy, including wholesale prices in the months before each update.
Prices have gone up mainly because global energy costs have increased due to the Iran conflict. These higher costs are being passed on to UK households through the price cap.
Energy Secretary Ed Miliband said: “The rise in the price cap because of a war we did not choose is deeply unwelcome news for households across the country”. He said the government wants to increase homegrown clean energy to reduce reliance on global markets over time.
What the regulator says
Speaking to BBC Radio 4’s Today programme, Ofgem’s interim chief executive Tim Jarvis said the increase in the price cap was “almost entirely driven” by higher global gas prices linked to the conflict in the Middle East.
He also explained that the next quarterly change to the price cap, due in October, will depend on how quickly there is progress towards a peace deal in the Middle East, whether key supply routes such as the Strait of Hormuz reopen, and how quickly energy markets recover.
“It is unfortunately now looking like a more long-term disruption to markets than we might originally have hoped,” he said.
What this means for your monthly bills
For a typical household paying by direct debit, the rise in the price cap means higher unit rates for both electricity and gas from July. This means each unit of energy used will cost more, even if your overall usage stays the same.
On average, households will see their energy bills increase by around £18 per month, or £221 per year. While the price cap sets a maximum rate, actual bills will still depend on how much energy a household uses.
This latest rise also takes the average bill to its highest summer level in several years, adding further pressure on household budgets already affected by wider cost of living pressures.
H2: Why the price cap keeps changing
The energy price cap is updated every quarter to reflect changes in the cost of supplying energy. It includes wholesale energy costs and the daily standing charge, which applies regardless of usage.
Because it tracks market conditions, the cap can move up or down depending on global energy price shifts. The latest increase reflects a period of higher wholesale costs feeding through into household bills.
What could happen next
The next price cap update in October will depend on how global energy markets develop over the coming months. Ofgem has highlighted that outcomes will be shaped by geopolitical developments in the Middle East and how quickly markets stabilise.
If conditions improve, pressure on prices could ease. If disruption continues, further changes to the cap remain possible, reflecting ongoing volatility in global energy supply.
Source
Energy price cap in Great Britain rises by 13% from July: Energy price cap in Great Britain to rise by 13% from July. The Guardian. Accessed 01 June 2026.
