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2026-05-27 21:04:23
[UK Energy Price Cap Surges 13% to £1,862 in July; Analysts Warn of Another 2% Increase in Winter] ⑴ The UK Energy Regulatory Authority raised its energy price cap by 13% in July, bringing the annual bill for a typical dual-fuel direct-debit household to £1,862, an increase of £221 from the current level. Natural gas prices rose by 24%, far exceeding the 5% increase in electricity. The cap covers millions of households in England, Wales, and Scotland. ⑵ This increase was widely anticipated due to the closure of the Strait of Hormuz caused by the Iran-Iraq War, which has pushed up global energy prices. Cornwall Insights predicts the price cap will rise another 2% to £1,899 in October, coinciding with a rebound in winter heating demand. The agency's chief advisor pointed out that even if the Middle East conflict ends immediately, the damage to infrastructure, supply chain disruptions, and erosion of market confidence will not be repaired overnight, and the impact on bills may last longer. ⑶ The new unit rates from July are: natural gas from 5.74 pence to 7.33 pence per kilowatt-hour, and electricity from 24.67 pence to 26.11 pence. The UK Energy Secretary expressed deep regret over the price increases caused by the war, and the government has taken measures including freezing fuel taxes, providing free public transport for children nationwide in August, reducing bills by an average of £150 over the next few years, and extending the winter relief discount for approximately 6 million households. Consumers can avoid price increases by locking in fixed energy contracts, with current fixed rates approximately £250 lower than the July cap.
