Great Britain energy price cap rises 13% from 1 July

The quarterly cap on gas and electricity charges in Great Britain will rise 13% from 1 July to the equivalent of £1,862 a year for an average household. Unpaid energy bills climbed by £240m in the past three months to reach an all-time high of almost £4.8bn, according to data released by the industry regulator Ofgem.

energy prices have risen due to the war in Iran, which has disrupted oil and gas shipments via the strait of Hormuz for the past four months. The price cap had delayed the full impact on household bills until this week. A government spokesperson said the government has taken £150 of costs off energy bills for the years ahead and extended the warm home discount to around 6 million households.

Industry proposals Good Energy chief executive Nigel Pocklington said rising energy bills are becoming a financial nightmare for millions of households. The company has proposed moving the cost of supporting government policies away from energy bills and into general taxation, while increasing warm home discount payments by £300 for 6 million vulnerable households.

The plan would cost the Treasury about £10.1bn and save the typical bill payer £76 a year, according to the company. Good Energy has also joined calls to break the link between expensive gas power and the overall electricity market price by taking gas plants out of the market and into a strategic reserve.