Ofgem energy price cap set to rise by 13 percent on July 1
The UK's energy price cap will increase to £1,862 annually for households on variable tariffs starting in July. This change represents a monthly increase of approximately £18 for many consumers.
Amalgamated from The Mirror (opens in new tab), The Mirror (opens in new tab), The Sun (opens in new tab)
Ofgem’s energy price cap is set to increase by 13 percent beginning July 1, according to reports from The Mirror and The Sun. This adjustment applies to households in England, Scotland, and Wales that are on variable energy tariffs rather than fixed-term contracts.
The new annual cap will reach £1,862 for a typical household paying via direct debit. Both The Mirror and The Sun report that this change results in an increase of more than £220 per year, which translates to approximately £18 more per month.
Reports from The Mirror specify that the price cap is designed to protect consumers on variable tariffs who do not have a fixed contract for their energy supply. A variable status means the consumer's bill fluctuates based on market rates rather than remaining at a set price for the duration of a year or more. According to The Sun, the transition to the higher cap takes effect exactly on July 1. This means households without fixed deals face an immediate rise in costs as the new pricing period begins.
Why this matters
The increase impacts households without fixed-price contracts, impacting those on variable tariffs during a period of high energy demand. It highlights the ongoing role of Ofgem's price cap in managing costs for consumers who do not have private agreements with their suppliers.
What's confirmed / what isn't
All reporting sources agree on the 13 percent increase, the £1,862 annual figure, and the July 1 start date. There are no conflicting reports regarding the scope of these changes or the specific amounts involved.
Background
Ofgem is the government-appointed energy regulator for Great Britain. The price cap is a mechanism that limits how much energy companies can charge customers on standard variable tariffs.