Energy price cap to rise 13% from 1 July

The energy regulator, Ofgem, has confirmed that the energy price cap will rise by 13% from 1 July. For a typical household, this equates to an increase of around £200 a year on energy bills.

The rise reflects ongoing volatility in energy markets, particularly increases in wholesale gas costs. It’s important to note that the price cap limits the unit rate you pay for energy (the cost per unit of gas or electricity), not your total bill, so what you pay overall will depend on how much energy you use.

What does this mean for unit rates?

From 1 July, average unit rates will increase to:

Electricity: 26.11p per kWh (around a 5% increase)
Gas: 7.33p per kWh (around a 24% increase)

This means, for example:

Running a typical tumble dryer (around 3 kWh) for one hour could cost around 78p, up from 74p
Running a gas heater (around 6 kWh) for one hour could cost around 44p, up from 34p

These figures are based on typical usage assumptions. Actual costs will vary depending on the efficiency of your appliances and how you use them.

Why is gas increasing more than electricity?

July’s increase is unique in that it is more heavily weighted towards gas prices, with electricity prices rising less sharply. This reflects the increase in the amount of renewable generation on the system and therefore reduced reliance on gas to generate our electricity.

Standing charges, which are fixed daily costs you pay to stay connected to the energy network, will remain largely unchanged.

Should you consider a fixed tariff?

If you’re on a variable tariff (where prices can change, typically in line with the price cap), it may be worth exploring fixed rate options.

A fixed tariff means your unit rate and standing charge are locked in for a set period, usually 12–24 months.

Potential benefits:

Price certainty: Your rates won’t change, making bills easier to predict
Protection from rises: If prices go up again, your rate stays the same
Possible savings: Some fixed rate deals may be cheaper than current variable rates

Things to consider:

If prices fall, you’ll stay on your fixed (possibly higher) rate
You may have to pay an exit fee (a charge for leaving early) if you switch before your contract ends
Fixed tariffs offer less flexibility if your circumstances change

There isn’t a one-size-fits-all option. The right choice depends on what deals are available, your budget, and how comfortable you are with potential price changes.

What else can you do?

It’s a good idea to submit a meter reading before 1 July, if you don’t already have a smart meter. This helps ensure you’re billed correctly for energy used before the price increase takes effect.

Support available

We know this increase will be concerning for many households. PECT’s energy advice service is here to help residents across Fenland, Huntingdonshire, Cambridge City and East Cambridgeshire.

A free 45-minute call with our team can help you: