OFGEM will raise the energy price cap by 13% from July due to the ongoing conflict in the Middle East, the regulator has announced.
The jump on July 1 will equate to a rise of £18 a month for the average household using both electricity and gas, with households seeing an increase of 24% on their gas bills and 5% on their electricity bills.
Ofgem chief executive Tim Jarvis said the price change “reflects continued volatility in global energy markets. This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy”.
He added: “We understand many will be concerned about rising prices. While energy use typically falls over the summer months, there are still practical steps households can take to manage costs, including exploring fixed tariffs or changing their payment method. Smart meter customers can also take advantage of half price or cheap electricity at the weekends.
“While our energy supplies remain secure, the best way to limit this exposure is by investing in our energy network. That’s why we’re unlocking the funding needed for the biggest transformation of our lifetime to deliver a system that is secure, resilient and works for consumers across Great Britain.”
UK Energy Secretary Ed Miliband said: “The rise in the price cap because of a war we did not choose is deeply unwelcome news for households across the country. We know people were under pressure before this crisis, and that’s why easing that burden is our number one priority.
“We will continue to monitor the situation ahead of the winter and plan for all contingencies. In the immediate term it is essential to de-escalate this conflict to bring oil and gas prices down and as Britain faces the second fossil fuel crisis of this decade, we must learn the right lessons.
“The way to get bills down for good and avoid these price spikes is to go further and faster with this government’s drive for clean homegrown power we control. We are upgrading as many homes as possible ahead of winter with the biggest investment in warm homes in British history.”
Following the announcement, Scottish Energy Minister Stephen Gethins has said that Scotland’s energy must be in Scotland’s hands.
“People across Scotland are already struggling to afford their energy bills – and today’s confirmation of a further price hike will be extremely concerning,” he said.
“We are one of the most energy rich nations in the world yet pay some of the highest energy bills in Europe – it just does not add up.
“In an energy rich country like Scotland, nobody should be struggling to pay their bills – and the fact that so many are shows the fundamental problem with having control of Scotland’s energy resources in the hands of Westminster governments.
“Whether Labour or Tory these Westminster governments have completely let Scotland down – they have used the North Sea as a cash cow, are decimating the industry and giving Scotland nothing in return.”
Gethins added: “Scotland’s energy must be in Scotland’s hands – so we can make our vast energy wealth work for us and bring down bills.
“We will formally request the devolution of energy powers to the Scottish Parliament, so that we can take the decisive action we need. And if the UK Government refuse, it will only underline the pressing need for a fresh start with independence.
“Energy-rich Scotland is paying the price of Westminster failure. With the fresh start of independence we will bring down people’s bills.”
Ned Hammond, deputy director of customer policy at Energy UK, which represents industry firms, said: “A rise of this scale will already be a concern for millions of customers but such worries will be magnified if bills remain at this level – or higher – over the winter months.
“So the Government must now focus on how it can best target support later in the year to those customers most in need – in addition to the help suppliers already offer.
“It’s another unwelcome reminder – coming too soon after the last one – of how our country’s high dependence on gas leaves us exposed to price spikes we can do nothing about resulting from conflicts thousands of miles away.”
The price cap refers to the default tariff applied when a customer has not signed for a fixed-rate deal.
It sets a maximum price per unit of gas and electricity, meaning households only pay for the amount of energy they use.
Currently, 40% of accounts – or 22 million – are fixed tariffs, according to Ofgem figures, and are therefore unaffected by this price rise.
Uplift, a campaign group that promotes a transition away from oil and gas production in the UK, deputy director Robert Palmer said: “People are fed up with an energy system that sees oil and gas companies rake in billions in profits, while the rest of us are saddled with higher bills.
"This is not the first time we have seen the gas price soar off the back of conflict and it won’t be the last. While we remain dependent on gas, a handful of oil giants will continue to get rich at our expense.
"More North Sea drilling will do absolutely nothing to lower energy bills and only make a minimal difference to energy security. After 50 years of drilling, we have burnt most of the UK’s gas reserves.
“Politicians need to learn the lesson of the last five years – that the only way to insulate ourselves from these risks is by doubling down on renewables and helping more households and businesses make the switch to clean electricity. This is just common sense in today’s world.”
Meanwhile, Simon Francis, coordinator at End Fuel Poverty Coalition, said: "Behind every energy price rise are households whose direct debits are about to rise, families whose energy debt is harder to clear, and pensioners whose summer is already overshadowed by the winter ahead. Meanwhile, the energy industry has posted more than £3 billion in profits from its UK operations in the first three months of 2026.
"With energy costs rising over the summer, any chance households had to reduce energy debts or build up reserves before the winter heating season will be wiped out.
"We are also worried that energy firms will now factor higher costs into direct debit calculations, meaning many households will feel the financial impact of winter long before October.
"That concern is sharpened by forecasts suggesting the October cap could remain at a similar level, leaving millions of households facing an extremely difficult year ahead if nothing changes.
"This summer will also bring its own pressures.
"With the vast majority of existing homes at risk of overheating in extreme heat events, and the poorest neighbourhoods seven times more likely to be vulnerable, households will need to run fans and cooling equipment exactly when their bills are rising.
"The Government cannot wait until September to act. It must confirm what support will be available, address the fact that relying on gas for heating is a dead end as the North Sea runs dry and chart a path for households to find a permanent way off the gas price rollercoaster."
