Energy Bills Rise 13% as Ofgem Hikes Price Cap in July
Households on standard variable tariffs face a £221-a-year jump from 1 July 2026 as energy regulator Ofgem raises the price cap to £1,663 (or £1,862 under old consumption values), driven by Middle East conflict disrupting oil and gas supplies.
From 1 July, Ofgem has announced a 13% increase of the energy price cap for the period covering 1 July to 30 September 2026. This increase is a result of higher wholesale gas prices, caused by the ongoing conflict in the Middle East.
The practical impact varies by fuel type and location. Electricity prices are set to increase by less than gas prices – electricity bills rising by around 5% compared to gas bills which are rising by 24%. For a typical dual-fuel household paying by direct debit, energy prices will go up by 13% for a typical household who use electricity and gas and pay by Direct Debit.
However, there is a modest silver lining. Currently, 40% (22 million) of accounts are fixed tariffs and are therefore unaffected by this price rise. You are not affected by the changes to the energy price cap if you have changed to a fixed rate tariff.
What this means for expats: If you're on a variable tariff, your energy bills will jump noticeably this summer. Switching to a fixed-rate deal now—before the July increase takes effect—could lock in lower rates. London and southern renters may be more exposed, since private rental costs have spiked in London and rents often pass energy costs onto tenants. For families heating homes through winter or using air conditioning in summer, budgeting an extra £200+ per year is essential.
Sources
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