The UK's energy bills will increase by 13% in July, as Ofgem raises the price cap in response to higher gas prices

British households, already feeling the pinch of the rising cost of living, will be greeted with energy bills that average PS1,862 per year from July. The regulator Ofgem has raised its price ceiling by 13% and blamed the soaring wholesale prices for gas in the Middle East.

The increase by the regulator, an independent government department, is coming at a time when Prime Minister Keir Starmer faces intense pressure from his cabinet to alleviate'some of the economic impact he claims is due to the war.

The?price increase reflects the continued volatility of global energy markets. Ofgem CEO Tim Jarvis stated that the ongoing conflict in the Middle East is causing wholesale gas prices to rise. This has an impact on the energy price.

Ofgem's price cap is based on the wholesale energy price. It is calculated quarterly using a formula that includes network costs, environmental and social levies and supplier's costs.

The cap for electricity and gas usage is now PS 1,862 ($2,504) per year. This is an increase of?around PS 221 over the previous cap for April-June, which was PS 1,641 per year.

(source: Reuters)