Household energy costs in the United Kingdom are expected to rise to their highest level in two years this summer, driven by supply constraints linked to the conflict involving Iran, the country’s energy regulator has announced.
The state regulator Ofgem said the energy price cap will increase by 13% in July, with electricity prices rising by around 5% and gas bills surging by 24%.
The price cap, which limits how much households can be charged for utilities, is reviewed every three months.
“The latest price change reflects ongoing volatility in global energy markets. Higher wholesale gas prices, driven by continued conflict in the Middle East, are affecting the price consumers pay for energy,” Ofgem CEO Tim Jarvis said.
The current cap sets the average annual household energy bill at £1,641 (€2,206.94). From July, this is expected to rise by about 13.5% to £1,862, marking the highest level since early 2024.
Despite rising costs, households in Britain have reduced their energy consumption. According to Ofgem, electricity use has fallen by around 7% and gas consumption by 17% compared with the previous review, when the price cap had been reduced by 7%.
Ofgem said it will factor this lower consumption into future pricing calculations.
Currently, about 40% of UK households are on fixed‑term contracts, meaning they will be protected from the upcoming price increases in July.
However, the regulator is expected to raise the price cap again in October.
Source: CNA
