Energy bills to jump 13 per cent from July as price cap climbs to £1,862

Households across Britain are set to face higher energy bills this summer after the energy price cap rose by 13 per cent. The increase means the typical household paying by Direct Debit will see annual costs climb to £1,862 between July 1 and September 30, 2026.The new cap, announced by Ofgem, is based on the average energy unit rate and standing charge paid by customers in England, Scotland and Wales. While the figure reflects annual costs, the amount households actually pay will depend on how much energy they use.The regulator said the increase has been driven by higher wholesale gas prices, which have been pushed up by ongoing conflict in the Middle East.Customers will see a much steeper rise in gas costs than electricity costs. Ofgem said gas bills are increasing by around 24 per cent, while electricity bills will rise by about five per cent. TRENDING Stories Videos Your Say For a typical household using gas and electricity and paying by Direct Debit, the new price cap will add around £18 a month to energy costs if maintained over a full year. The current cap stands at £1,641 a year, meaning annual bills will rise to £1,862 from July.Tim Jarvis, chief executive of Ofgem, said: Today’s price change reflects continued volatility in global energy markets. This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy.We understand many will be concerned about rising prices. While energy use typically falls over the summer months, there are still practical steps households can take to manage costs, including exploring fixed tariffs or changing their payment method. Smart meter customers can also take advantage of half price or cheap electricity at the weekends.He added: While our energy supplies remain secure, the best way to limit this exposure is by investing in our energy network. That's why we’re unlocking the funding needed for the biggest transformation of our lifetime to deliver a system that is secure, resilient and works for consumers across Great Britain.Cornwall Insight's forecasts suggest the cap in October will be at a similar level to July, even if the Middle East conflict were to end soon, due to the physical damage to infrastructure and lingering effect of disrupted supply.Calls have been mounting for the Government to set out action to support the most vulnerable, but Chancellor Rachel Reeves stopped short of any immediate energy measures in her cost-of-living plan.She told MPs last week: We stand ready to act if market conditions worsen significantly later this year and I have been leading cross-Government contingency work on design of potential future targeted and temporary support for businesses.The energy price cap limits the maximum rates suppliers can charge for gas and electricity, rather than placing a cap on a household's total bill. This means families still pay for the energy they use, with higher consumption resulting in higher costs.Many households have not yet felt the full impact of rising wholesale energy prices.The current cap, which came into force in April, was around seven per cent lower than the previous level, helping to ease pressure on bills.However, that respite is set to end when the new cap takes effect in July. Although lower energy use during the warmer summer months may soften the immediate impact, concerns are mounting over what could happen later in the year.Experts have warned that households may face a more significant squeeze if energy prices remain elevated when the cap is reviewed again in October, just as colder weather increases demand for heating and pushes consumption higher. Our Standards: The GB News Editorial Charter