What is happening to gas and electricity prices?
Gas and electricity prices are set to rise significantly starting July 1, with typical annual energy bills increasing by £221 to £1,862. This 13% increase in the energy cap is attributed to soaring wholesale oil and gas costs linked to geopolitical tensions. Ofgem, the regulator, has adjusted its consumption estimates, reflecting changes in household energy usage due to rising prices and efficiency improvements.
- ▪The energy cap will rise to £1,862 for typical annual bills starting July 1.
- ▪The increase is driven by high wholesale oil and gas costs due to the US-Israel conflict with Iran.
- ▪Ofgem regulates the energy market in England, Scotland, and Wales, affecting around 33 million households.
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What is happening to gas and electricity prices? Just nowShareSaveAdd as preferred on GoogleGetty ImagesTypical annual energy bills will rise by £221 to £1,862 from 1 July, the regulator Ofgem has announced.The 13% increase in the energy cap affects millions and reflects soaring wholesale oil and gas costs caused by the US-Israel war with Iran.What is the energy cap and how is it changing?The energy cap fixes the maximum amount which customers on standard variable tariffs can be charged for each unit of gas and electricity used.It covers around 33 million households in England, Wales and Scotland and is set by the regulator Ofgem every three months.Of the 33 million: around 19 million pay by direct debitaround 7 million pay by standard credit (they pay when they get a bill)around 6…
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