politics
UK Energy Price Cap Rises 13 Percent to £1,862 per Year
Ofgem increased the energy price cap by £221 starting July 2026. Households without smart meters are advised to submit readings before the change takes effect.
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The UK energy price cap rose 13 percent to £1,862 a year for the July-to-September period, Ofgem announced. The increase adds £221 to the previous limit for average household gas and electricity use. The regulator set new unit rates at 26.11 pence per kilowatt hour for electricity and 7.33 pence per kilowatt hour for gas.
These rates apply to customers on standard variable tariffs who pay by direct debit.
Consumer groups advised the estimated 5.3 million households without smart meters to record current usage before the higher rates begin. Without updated readings, suppliers may bill prior consumption at the new prices. Ben Gallizzi, energy spokesman for Uswitch, said households should submit a meter reading at the end of the month and consider fixed-rate deals to limit exposure to the increase.
The price rise follows higher wholesale costs linked to the closure of the Strait of Hormuz during the U.S.-Iran conflict. The route carries about one-fifth of global oil and gas supplies. Energy debt reached £4.79 billion in the first quarter of 2026, up 5 percent from the previous quarter, according to Ofgem data.
Cornwall Insight projected only a 0.5 percent bill reduction in October under a 60-day ceasefire. Energy consumers minister Martin McCluskey said the government is aware of household concerns and intends to address affordability.
