What is the new annual energy price cap for British households starting in July, and how much has it increased compared to the previous cap?

The new annual energy price cap for British households starting in July is £1,862, which represents an increase of £221 from the previous cap of £1,641 for April–June. This 13% rise is attributed by Ofgem to higher wholesale gas prices driven by ongoing conflict in the Middle East.

Why did Ofgem raise the energy price cap, and what key factor does it identify as the main driver?

Ofgem raised the energy price cap because of 'continued volatility in global energy markets', with the regulator explicitly stating that 'higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy'. Wholesale energy prices are identified as the largest single factor in setting the domestic price cap.

Energy bills in Britain to jump 13% in July as Ofgem lifts price cap to reflect higher gas price

May 26, 2026

UK regulator Ofgem raised the domestic energy price cap by 13% to £1,862 annually from July, citing soaring wholesale gas prices driven by Middle East conflict.

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Energy bills in Britain to jump 13% in July as Ofgem lifts price cap to reflect higher gas price

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