U.K. Energy Bills to Jump 13% as Gas Shock Hits Households
China's CNOOC Starts Production at Bohai Sea Oilfield What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… UK energy prices will jump by 13% from July 1 after energy regulator Ofgem on Wednesdayraisedthe price cap as a result of higher wholesale gas prices amid the Middle East crisis.
The UK has a so-called Energy Price Cap in place, which protects households from excessively high bills by capping the price that energy utility providers can pass on to them.
The price cap is a limit on what suppliers can charge domestic consumers per kilowatt hour of energy used.
Because of the new energy crisis created by the Iran war, energy prices in Britain will jump between July 1 and September 30, 2026.
“Today’s price change reflects continued volatility in global energy markets,” said Tim Jarvis, Ofgem CEO.
“This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy.” Thanks to the so-called energy price cap in place, energy bills for a typical household that uses electricity and gas would drop by 7% between April and June, Ofgemsaidin February in its quarterly energy price cap announcement.
However, a steep rise in the bills was widely expected from July, due to the spike in international gas prices.
Gas still plays a key role in energy supply in the UK despite the government’s ambition to have 95% ‘clean energy grid’ by 2030, including nuclear and renewable power.
Gas is a key source of space heating, apart from generating a third of Britain’s power, or much more if wind speeds and wind power output are low.
The current crisis has prompted energy associations and analysts to call on the UK governmentto boost Britain’s gas storagecapacity and support production in the UK North Sea instead of constantly erecting barriers to the oil and gas industry.
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| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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