A BBC energy expert has issued an urgent call for customers of major suppliers including Octopus Energy, British Gas, E.ON Next, OVO, EDF, and Scottish Power to take immediate action. With a 13% increase in the energy price cap coming into effect on July 1, households risk facing significantly higher bills unless they act now.
Approximately 5.3 million homes on standard tariffs without smart meters are particularly at risk of paying for past energy usage at the new, elevated rates. Ofgem’s price cap regulates the maximum price per unit of gas and electricity companies may charge standard tariff customers, ensuring some protection from soaring wholesale energy costs.
Starting July, electricity prices for customers paying by direct debit will rise from 24.67p to 26.11p per kilowatt-hour, while gas prices will jump from 5.74p to 7.33p per kWh. This means the average household bill is expected to surge by £221 annually, reaching around £1,862.
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On BBC Breakfast, correspondent Peter Ruddick explained that the price cap is reviewed quarterly and impacts about 33 million households across England, Scotland, and Wales. “Although the rise coincides with typically lower summer energy usage, consumers should still prepare for an average increase of roughly £18 per month,” he said. The sharp increase in gas prices is largely driven by the ongoing Middle East conflict, which has pushed wholesale gas costs higher.
Ruddick stressed the importance of submitting an accurate meter reading, especially for households on standard variable tariffs, to avoid being charged inflated bills for previous usage. He also recommended exploring fixed energy deals to lock in current rates and protect against future hikes.
Energy comparison site Uswitch echoed this advice. Spokesman Ben Gallizzi urged consumers to “submit a meter reading and secure a cheap fixed energy deal” to guard against rising costs.
Government officials acknowledge the pressure on households. Martin McCluskey, Minister for Energy Consumers, highlighted measures to support families, including budget actions reducing bills by an average of £150 and the expansion of the Warm Home Discount scheme benefiting millions. McCluskey reaffirmed the government’s commitment to tackling energy affordability while advancing clean energy solutions to bring costs down long-term.
Despite a recent ceasefire in the Middle East easing some supply tensions, analysts warn that price volatility remains due to uncertainties such as the status of the Strait of Hormuz shipping route and ongoing regional instability.
Industry forecasts suggest energy bills will stay elevated throughout winter, with only a slight decrease expected in October. Ofgem will announce the next price cap update for October to December by August 26.
As bills rise, consumers are encouraged to act swiftly — taking meter readings, reviewing tariff options, and considering fixed-rate plans — to manage costs amid uncertain market conditions.