Energy bills are set to increase by £221 a year from July (Image: Getty)
Energy bills are set to increase by £221 a year from July as Ofgem increases the energy price cap by 13%. That works out as an extra £18 a month for the typical household.
The cap increase will see average energy bills rise to £1,862 a year for the typical household on a standard variable tariff paying by Direct Debit in England, Scotland and Wales. It’s up from the £1,641 cap currently in place, an increase of 13%.
That’s the typical household, however. You can estimate how much your bill will change using our interactive calculator.
The price cap sets the maximum you can be charged for unit rates and standing charges – so your bill can be higher or lower than the price cap figure.
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Interactive
Ofgem have attributed the increase to higher wholesale gas prices, caused by the ongoing conflict in the Middle East.
The cap is still below its level during the height of the energy crisis in 2022. The Government then put a limit on bills of £2,500.
Tim Jarvis, Ofgem’s CEO, 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.
“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.”
He added that smart meter customers can also take advantage of half-price or cheap electricity at weekends.
Mr Jarvis continued: “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.”
Brits have been urged to review their tariffs, as those on fixed rates are able to avoid July’s increase.
Richard Neudegg, director of regulation at Uswitch.com, said: “July’s serious price rise is the biggest jump we have seen in years, but the real concern is what comes next.
“Households can currently lock in a rate that undercuts the July cap by around £250 for the average home. For anyone still on a standard tariff, your bill will go up unless you act.”
