Energy price cap rises again as July bill jumps to £1,862

What's happened

Ofgem has confirmed the energy price cap will increase by 13% from July, pushing typical annual bills to £1,862. The shift is driven by higher wholesale gas prices amid the Middle East conflict. About 40% of accounts are on fixed tariffs and are unaffected. Households are advised to consider fixed deals and smart-meter off-peak pricing.

What's behind the headline?

Key implications

• The cap has risen due to market volatility linked to the Middle East conflict, but fixed tariffs remain cheaper for many customers.
• Consumers are urged to compare whole-of-market deals and consider fixed-price options to lock in lower rates ahead of potential future cap changes.
• Off-peak pricing and smart-meter usage could blunt bills for those on the default tariff.

What readers should watch

• Further cap adjustments are anticipated in October as wholesale conditions evolve.
• Fixed tariffs may offer substantial savings versus the rising cap, depending on usage and exit fees.
• Providers are expected to adjust products; shoppers should monitor comparison sites for new offers.

How we got here

The price cap is updated quarterly to reflect wholesale energy costs. The cap on standard variable tariffs affects roughly 33 million households in Britain, with 40% on fixed tariffs insulated from this rise. The Middle East conflict has influenced wholesale gas prices, contributing to the latest increase; analysts expect further movement in October.

Our analysis

The Independent, CNBC, The Guardian, The Scotsman, The Scotsman (special reports), The Guardian (Hickey), CNBC (Z).

Go deeper

• What fixed tariffs are currently cheapest where you live?
• Are you on a fixed tariff and planning to switch before the next cap update?
• Have you checked if your household can claim any energy-related support or benefits?

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