Energy price cap in Great Britain to rise by 13% from July
Great Britain’s energy price cap will rise 13% in July, lifting the average annual bill to £1,862.
Intelligence analysis by GPT-5.4 Mini
Ofgem will raise the energy price cap from July after months of higher wholesale gas and electricity costs, which the Guardian links in part to the war on Iran. The increase will hit households and add to concerns about existing energy debt and the next cold season.
A big rule is changing for energy bills in Great Britain. From July, the average bill is going up by 13%, so homes will pay more for gas and electricity.
It is a bit like a shop raising the price of bread because flour suddenly got much more expensive. Ofgem watches the market and sets a cap so companies cannot charge too much.
The article says the rise is happening because energy is costing more around the world, and that is already making life harder for families who owe money on their bills.
Analysis
What changed
Great Britain’s energy price cap will rise by 13% from July to the end of September, taking the average annual gas and electricity bill to £1,862. The Guardian says the jump reflects months of higher market prices, with the war on Iran cited as a major driver of the latest surge.
How the cap works
Ofgem sets the cap by looking at the cost of supplying energy to homes, including wholesale market prices in the months before each new cap period. The cap also limits the daily standing charge, the fixed fee households pay just to stay connected.
Under the new cap, direct debit customers will see electricity rise from 24.67p to 26.11p per kWh, while gas will rise from 5.74p to 7.33p per kWh. The article says the summer increase is the steepest in four years.
Wider pressure
The Guardian says the war in Iran has created the biggest energy supply shock on record by choking oil and gas exports from the Gulf. It reports that European gas prices are more than double pre-crisis levels and around three times higher than before Russian gas exports to Europe stopped after the invasion of Ukraine.
The article also links the rise to a wider household debt problem. Unpaid energy bills hit a record £4.5bn earlier this year, according to official data cited by the paper. Some of that debt is effectively spread across bill payers through an annual £52 charge built into the cap, which means the cost of the crisis is still being shared widely.
Key points
- Ofgem will raise the Great Britain energy price cap by 13% from July.
- The average annual gas and electricity bill will rise to £1,862.
- The Guardian says higher global energy prices are being driven in part by the war on Iran.
- Direct debit customers will face higher unit rates for both electricity and gas.
- The article warns the rise could worsen already record energy debt among households.
