Typical annual household energy bills in the UK have risen by 13% to £1,862, following the implementation of Ofgem’s new price cap on 1 July.
The increase adds £221 to the average annual cost for consumers in England, Scotland, and Wales, marking a significant escalation in household expenditure.
The hike reflects higher underlying wholesale costs and is the largest rise since 2023, according to recent reports.
This surge is driven by ongoing tensions in the Middle East, which have kept gas prices elevated and strained affordability for millions of households.
The increase compounds existing inflationary pressures, forcing consumers to prioritize essentials over discretionary spending.
For markets, the development underscores the persistent link between geopolitical risk and domestic inflation.