UK Ofgem Announces 13% Energy Price Cap Hike Amid Middle East Conflict

UK's Ofgem has announced a 13% increase in the energy price cap from July to September 2026, mainly due to higher wholesale gas prices triggered by the ongoing Middle East conflict. Despite reduced average household energy consumption, bills are expected to rise significantly.

The UK energy regulator, Ofgem, has announced a significant 13% increase in the energy price cap for the period from July to September 2026. This rise is primarily attributed to escalating wholesale gas prices caused by the ongoing conflict in the Middle East.

The increase will see typical household bills for electricity and gas by direct debit rise from £1,641 to £1,862 annually, translating to an £18 monthly hike for average consumers.

Despite the rise in costs, there is a reported 7% reduction in electricity use and a 17% reduction in gas consumption compared to previous reviews, illustrating changing energy usage patterns among consumers.