Energy bills for typical household to go up 13% from July
Ofgem has announced the latest price cap for our energy bills
Last updated 7 hours ago
Ofgem has revealed that the energy price cap will increase by 13% from the 1st July for a typical household in England, Scotland and Wales.
Customers will see a smaller price increase of around 5% on their electricity bills compared to gas bills, which are rising by 24%.
Based on the energy use of a typical domestic household, from July the price cap will rise by £18 a month for the average household using both electricity and gas if this level was sustained for a year.
The current price cap for a typical household paying by direct debit for gas and electricity is £1,641.
Ofgem chief executive Tim Jarvis said: “Today’s 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.
“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.”
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.
“To help people facing higher costs, the Chancellor acted last week to freeze fuel duty and made bus travel free for children across England in August. We have taken £150 average costs off energy bills for the years ahead, and we have also extended the Warm Home Discount for around 6 million families.
“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.”