Overview
- The price cap, which rose on Wednesday, 1 July, increased by 13% and added about £221 to a typical annual dual-fuel direct-debit bill.
- Ofgem set new unit limits of 26.11p/kWh for electricity with a 57.19p daily standing charge and 7.33p/kWh for gas, and the prepayment-meter cap rose to £1,620 a year.
- Higher wholesale gas costs tied to the ongoing conflict in the Middle East are the main driver, and British Gas with forecaster Cornwall Insight project the cap could be around £1,880 by April–June 2027 while stressing confidence in that outlook is low.
- Charities warn the rise will deepen household distress: 4.6 million households say they worry about affording bills and average energy debt for those seeking help has climbed to about £9,500 from under £6,000 in 2022.
- Consumers are urged to check meter readings, consider switching to fixed-rate tariffs, use support such as the Warm Home Discount and local Household Support Funds, and note Ofgem will announce the next cap in late August covering October–December 2026.