UK Energy Price Cap to Rise by 13% to £1,862 from July

Starting in July, the UK's average annual energy bill will increase by over £200, reaching £1,862, following a 13% rise in the price cap by energy regulator Ofgem due to the Iran war.

Wed May 27 2026

UK Energy Price Cap Increase Announced

Ofgem, the UK's energy regulator, has announced a new energy price cap effective from July. This will result in a 13% increase in the average annual energy bill for typical households, rising from the previous cap of £1,641 to £1,862. This represents an increase of more than £200, largely driven by the impact of rising commodity prices due to the Iran war.

Energy Bills Rise Despite Lower Household Consumption

While the current price hike is not as steep as increases seen during the Russia-Ukraine war, it will still pose a significant burden on consumers. Notably, household energy consumption has been decreasing, with UK households now using 7% less electricity and 17% less gas. However, Ofgem has revised its methodology for calculating average household energy use. When compared using the prior calculation format to the current format, the price has increased by 13% to £1,862. Under the new calculation, the figure would be £1,663, but the £1,862 figure is used for like-for-like comparison with previous caps.

*Source: YouTube: Sky News (2026-05-27)*

Tags: #UK #Energy #Inflation #Economy #Ofgem