UK Energy Price Cap Expected to Rise £209 from July

Ofgem will announce the new energy price cap for July to September on Wednesday. The cap covers typical dual fuel households across Great Britain. Cornwall Insight last week predicted the cap will rise to £1,850 from July. That figure represents a 13 per cent increase from April’s £1,641 level.

The cap sets a maximum unit price, so consumers pay according to their usage. Summer months typically bring lower demand and some relief on bills.

Energy costs have risen after Iran blocked the Strait of Hormuz shipping route. The route carries a fifth of the world’s oil and gas. Cornwall Insight forecasts the October cap will stay close to the July level. The forecast cites physical infrastructure damage and continued supply disruption.

The government has stated that tackling the affordability crisis is its number one priority. Its measures so far include a cut in VAT on attraction tickets, free bus travel for children in England during August, and a continued 5p-per-litre fuel duty reduction.

Chancellor Rachel Reeves told MPs last week the government stands ready to act if market conditions worsen significantly later this year. She also said she has led cross-government work on potential future targeted support for businesses. Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said households need reassurance and support, not a summer of suspense.

He called on the government to spell out winter support measures before the season begins. Economist Martin Beck at WPI Strategy said recent official figures showing lower retail sales in April already indicate energy pressures are affecting spending.

He cited higher petrol prices, the expected July bill increase, and weakening consumer sentiment as factors pointing to more cautious household spending.