Energy price cap to rise 13 per cent this summer

The energy price cap will jump 13 per cent this summer, the BBC and City AM report. The increase, effective from July 2026, will add roughly £156 to a typical dual-fuel household paying by direct debit. Ofgem is expected to confirm the new level next week, but both outlets agree the direction is clear: bills are heading up.

What is driving the 13 per cent jump

City AM puts the rise at 13 per cent, citing higher wholesale gas prices and increased network charges. The BBC reports that the cap will rise to £1,928 a year for a typical household, up from £1,772. The gap between the two figures is small, City AM’s percentage translates to about £1,928 as well. The real story is the cause: wholesale gas costs have climbed 18 per cent since January, and network charges, which cover the cost of pipes and wires, are up 12 per cent. That second number matters to homeowners: network charges are fixed per kilowatt-hour, so you cannot avoid them by using less energy. The only way to cut them is to reduce your total consumption.

What it means for a typical 3-bed semi

For a 3-bed semi using 12,000 kWh of gas and 2,900 kWh of electricity a year, the new cap adds £13 a month. That is £156 a year, enough to cover a week’s food shop. But the cap applies to unit rates and standing charges, so households with higher usage will see bigger increases. The bigger question for homeowners is whether this summer’s rise is a one-off or the start of a trend. The BBC notes that analysts expect further increases in October, when the cap is next reset. That makes the case for energy efficiency upgrades more urgent than ever.

The EPC and grant opportunity

Here is the angle the news outlets miss: a 13 per cent cap rise makes every kilowatt-hour saved worth more. A home with an EPC rating of D or E typically uses 30–40 per cent more energy than a C-rated home. Improving from D to C could knock £200–300 off annual bills, more than the cap rise itself. Three grants can help. The Boiler Upgrade Scheme offers £7,500 towards a heat pump, which can cut heating costs by 20–30 per cent. The ECO4 scheme funds loft and cavity wall insulation for low-income households. And the Home Upgrade Grant (HUG2) covers solid wall insulation and solar panels for off-gas homes. None of these are means-tested in the same way, but all require an EPC assessment to qualify. The catch: installers are busy, and lead times for heat pumps can stretch to 12 weeks. Start now, not in October.

Who qualifies, and who doesn’t

The cap rise hits everyone on a standard variable tariff. Fixed deals are still available but typically cost more than the cap. The BBC reports that the cheapest fixed tariff is currently £1,850, about £78 below the new cap. But fixing locks in that rate for 12 months, which could be a gamble if prices fall. City AM points out that the cap itself is a maximum, suppliers can charge less. The best advice is to compare tariffs now, before the July change. For homeowners, the smarter move is to spend the next three months on an energy audit. Check your loft insulation (250mm minimum), draught-proof windows and doors, and consider a smart thermostat. Every pound saved on usage is a pound that the cap cannot touch.

What to do next

Households on standard variable tariffs can switch to a fixed deal now, but check the exit fees. For those who own their home, the July cap rise is a signal to act on efficiency. Apply for the Boiler Upgrade Scheme through your installer, the £7,500 grant is deducted from the quote. Check your eligibility for ECO4 via the Energy Saving Trust website. And if your EPC is below C, book a new assessment: the cost is £60–120, but the savings from the upgrades it unlocks will far outweigh it. The cap is rising. Your bills do not have to.