Energy Bill Increase Forecast for July
Typical annual household energy bills could increase by £332 in July, according to calculations by energy consultancy Cornwall Insight, though this figure remains subject to change.
The forecast reflects the recent surge in oil and gas prices amid the ongoing US-Israel conflict involving Iran. Future changes in energy prices could cause the increase to rise further or decrease.
Ofgem's Role in Setting the Price Cap
The energy regulator Ofgem is scheduled to set the energy bill cap for July on 27 May, basing its decision on wholesale prices observed during March, April, and May.
This cap limits the amount a typical dual fuel household would pay, although actual bills vary depending on individual energy consumption.
Cornwall Insight's Latest Forecast
Cornwall Insight's most recent forecast anticipates that Ofgem's price cap for the period from July to September will reach £1,973 annually, an increase from the current £1,641 for a typical dual fuel household.
Scope and Function of the Energy Price Cap
The energy price cap applies to approximately 19 million households across England, Wales, and Scotland and is reviewed by Ofgem every three months.
It sets the maximum charge customers can incur per unit of gas and electricity under a standard or default variable tariff for a typical dual-fuel household paying by direct debit. However, it is presented as a cap on the typical overall annual energy charges.
