Customers of British Gas, EDF, EON, Ovo, and Octopus are facing a potential £209 increase in their energy bills from July 1. Cornwall Insight has predicted that the energy price cap will rise to £1,850.13 annually for a typical dual-fuel direct debit household in Great Britain, up from the current £1,641 for the period April to June 2026.
What Does This Mean for Households?
The predicted increase equates to around £137 per month currently, but the new cap would push monthly costs higher. Richard Neudegg, director of regulation at Uswitch.com, warned that a rise of this magnitude is alarming, especially with higher costs forecast for winter. However, he noted that households can avoid the price rise by switching to fixed tariffs that currently undercut the predicted cap by over £200 for the average home.
How to Avoid the Price Rise
Neudegg advised that fixing an energy deal now can save money and protect against the July price rise, locking in good rates for winter and beyond. He emphasized that doing nothing could be a costly mistake for those on standard tariffs.
The Energy Saving Trust commented on the global context, noting that the conflict in Iran could impact gas and oil prices, but the UK price cap remains in place until June 30. Ofgem will announce the new cap on May 27, with early forecasts suggesting a rise unless the situation changes.
