UK Energy Price Cap Rises by £200: Ofgem

AI Summary

The UK's energy price cap is set to rise by 13% from July, affecting millions of households. The average gas and electricity bill will increase to £1,862 per year. Analysts warn of further rises in October.

The UK Energy Price Cap Increase

The energy price cap in Great Britain will rise by 13% from July, the regulator Ofgem has announced. This means households will face the steepest summer rise in energy charges in four years after months of soaring market prices.

The Impact on Households

Under the cap, the average gas and electricity bill will increase to the equivalent of £1,862 a year (up from £1,641) from July until the end of September. This rise is due to the increase in global energy market prices caused by the conflict in the Middle East.

Future Outlook

Analysts from Cornwall Insight warn that the more pressing concern will be what follows. They forecast the cap to rise further to £1,899 per year in the October to December period, coinciding with the arrival of a colder season.

Government Support

The Government will face pressure to spell out what support is available to households before winter. Dr Craig Lowrey, principal consultant at Cornwall Insight, emphasizes that without a longer-term move away from energy imports, households will continue to face uncertainty in energy bills.