The Daily BriefMorning Briefing · Wednesday 1 July 2026 · 06:00 BST
Morning Briefing · Wednesday 1 July 2026

Ofgem Energy Price Cap Rises 13% From Today — Households Urged to Read Meters

Ofgem’s new energy price cap takes effect from today, with household energy bills up 13% year-on-year for the average dual-fuel household. The regulator is urging every UK household to read their meters today to avoid being over-billed when suppliers apply the new tariffs. The rise is the largest single-quarter cost-of-living jolt of 2026 so far and will feed directly into political pressure on the incoming Burnham government to review UK energy policy. Fixed-tariff customers are protected until their deal ends. Standing charges are also rising, meaning even low-users will see meaningful bill increases through the summer.

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The Ofgem price cap has become the effective benchmark for domestic UK energy pricing since 2019. The 13% rise reflects the delayed pass-through of Q1 wholesale gas price rises and the impact of higher network costs. The cost-of-living angle will be politically significant given the timing of the Burnham leadership transition — the incoming Prime Minister will inherit an immediate policy question about whether to reform the price-cap architecture, extend the Warm Home Discount, or accelerate the switch to smart-meter time-of-use pricing. The Warm Home Discount reform is one of the areas Burnham has flagged in speeches as a priority.

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