What will the energy cap changes mean for my bills?
Summary
From July 1, the UK energy regulator Ofgem raised the price cap on energy bills by about 13%, increasing the typical annual cost for households in England, Scotland, and Wales. The price cap limits how much energy companies can charge for standard tariffs, affecting around 33 million homes and reflecting the rise in wholesale gas and electricity prices.Key Facts
- The typical annual energy bill rose by £221, from £1,641 to £1,862 for direct debit customers on standard variable tariffs.
- Ofgem sets the energy price cap every three months for gas and electricity prices.
- The new gas price cap is 7.33 pence per kilowatt-hour (kWh), up from 5.74p; electricity is capped at 26.11p per kWh, up from 24.67p.
- About 33 million households in England, Scotland, and Wales are covered by this cap.
- Bills vary by payment method: direct debit customers face £1,862, standard credit £2,005, and prepayment customers £1,812 annually after the increase.
- Ofgem bases the cap on a “typical” household, now estimated to use 9,500 kWh of gas and 2,500 kWh of electricity annually, slightly lower than previous estimates.
- Standing charges, which are fixed daily fees for energy connection, remain mostly unchanged at about 57p per day for electricity and 29p per day for gas.
- Ofgem encourages energy companies to offer tariffs with low standing charges but higher per-unit costs to provide more options for customers.
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