Energy expert comments on news of rare summer price cap rise

Ofgem has today (27th May) announced a 13% increase in the energy price cap,* marking the first time we have seen a summer price cap rise in more than three years.**  

When the new price cap comes into effect on July 1st 2026, the average annual cost of energy for a typical household will increase by £221, from £1,641** to £1862.  

Today’s unusual price cap rise is a reflection of global circumstances, Gareth Kloet, expert at Go.Compare Energy explains: “Wholesale gas prices are the main driver behind today’s energy price increase. With the Iran war ongoing, gas prices are continuing to climb, and this in turn means UK households face rising costs. Even if you use electricity only, and not gas, you will see price increases as the UK generates a significant portion of its electricity through burning natural gas.”  

Gareth continues: “Many UK households will be concerned about the prospect of paying more for their energy, particularly in summer, when gas and electricity prices usually fall, due to there being less demand.  

“For many, summer is a time to make savings and build up credit with their energy provider. This helps act as a buffer in the winter months, when our energy bills are typically at their peak. However, this new price increase will add increased pressure for billpayers and make it harder to plan ahead.” 

Energy billpayers, act now 

With energy prices staying at their current lower rate until June 30th, Go.Compare’s energy experts are urging billpayers to act now to protect themselves against future price rises.  

Gareth says: “I would urge everyone to review their current energy contract, the rates they are paying, and whether it is a fixed or variable deal.  

“If you are on a variable contract, this means your energy provider can adjust the price you pay – up or down – as wholesale energy prices fluctuate. When prices are low, this means you can make a saving, but you are also at risk of paying unexpectedly higher bills if wholesale prices go up – as they are currently. 

“While fixed-rate contracts may not always offer you the lowest price available, what they do offer is stability, and the knowledge that your bills will stay the same for the duration of your contract. So, if you are worried about price rises you can’t plan for, a fixed-rate deal might be a good option. 

“However, before you commit to switching providers, do your research: check how long you have left on your contract and if you’re liable to pay any exit fees, and look closely at unit prices and standing charges when choosing a new deal. 

“Regardless of whether you opt for a fixed or variable contract, it’s important to make sure you take a meter reading on June 30th – this will help make sure you are paying the lower price cap rate for all the energy you use before the increase comes into effect the following day. 

“Remember, too, that making small changes to reduce your energy consumption at home can add up, and help lower your bills. Our top energy saving tips are: 

• Make the most of the summer heat: tumble driers cost money, but drying clothes outside is free – so plan ahead and get your laundry done on bright, sunny days 

• Switch to LEDs: LED bulbs are far more energy efficient, using about one tenth of the electricity of a standard bulb 

•  Only boil what you need: over-filling the kettle wastes a significant amount of energy, so only boil the amount you need, when you need it 

• Embrace ‘no mow May’: summer gardening can use a lot of energy, so ditch the hedge trimmer and mower and let your garden run a little wild 
• Cook cleverly: always place lids on pans while cooking to conserve heat and save energy, and try swapping in more energy-efficient appliances – like using an air fryer instead of the oven.” 

The price cap is reviewed quarterly by Ofgem, the energy regulator, and sets a limit on the unit rates and charges that energy suppliers can charge for standard variable tariffs.  

To learn more about the energy price cap, visit: https://www.gocompare.com/gas-and-electricity/guide/energy-price-cap/.  

And for more information on how to switch energy providers, Go.Compare has put together a guide which you can find here.