Overview
- The Ofgem change takes effect on Wednesday, July 1, and lifts the typical annual dual-fuel bill by about £221 to £1,862 for households on default or variable tariffs.
- Ofgem and suppliers say the rise follows earlier jumps in global oil and gas prices after conflict in the Middle East and disruption around the Strait of Hormuz pushed wholesale costs higher.
- An interim US–Iran ceasefire and reopening of shipping routes have eased wholesale prices, and analysts at Cornwall Insight now expect the October price cap to be broadly stable rather than rise again.
- Household energy arrears hit a record £4.79 billion in the three months to March, increasing pressure for short-term winter support and longer-term market reforms such as moving policy costs off bills.
- Consumers can protect themselves by submitting a June 30 meter reading to avoid being billed at the higher July rate or by shopping for fixed tariffs that are currently cheaper than the new cap.