27th May 2026
Ofgem has announced a 13% increase in the energy price cap, taking effect from 1 July to 30 September 2026.
This means energy unit rates are rising due to surging global wholesale gas prices linked to geopolitical tensions in the Middle East.
However, the headline figures published by the regulator look slightly different depending on how usage is measured.
The Key Figures Explained
The Underlying Increase: Under existing calculation metrics, the price cap is jumping by £221, moving from the current £1,641 up to £1,862 for a typical household paying by direct debit.
The New Formula Figure (£1,663)
Concurrently, Ofgem has officially updated its Typical Domestic Consumption Values (TDCV) to reflect that British households are using less energy (7% less electricity and 17% less gas).
Under these modernized usage benchmarks, the new published baseline is £1,663 per year.
Gas vs. Electricity Split: Gas prices are bearing the brunt of the shock, soaring by 24%. By contrast, electricity prices are rising by a much milder 5%, insulated by the UK's growing share of domestic renewable generation.
Who is Affected?
The price rise impacts approximately 22 million households in England, Scotland, and Wales who are on standard variable (default) tariffs. The remaining 40% of UK households currently locked into fixed-rate tariffs are entirely unaffected by this adjustment.