Great Britain's energy price cap from July 1 through September 30 will increase by 13%, following a rise in wholesale gas prices, driven by the conflict in the Middle East, energy regulator Ofgem said Wednesday.
The price cap, applicable for customers who have not signed up for a fixed-rate tariff, "sets a maximum rate per unit and standing charge that can be billed" for energy use, according to Ofgem.
Around 22 million customers, equivalent to 40% of total accounts, are under a fixed-tariff scheme and are not affected by the price hike.
From July, Ofgem noted that affected customers will see a 5% increase in electricity bills and a 24% jump in gas bills, reflecting "the increase in the amount of renewable generation on the system and therefore reduced reliance on gas."
For a typical household paying by direct debit and consuming both electricity and gas, the current price cap of 1,641 British pounds ($2,204.14) per year will increase by 18 pounds per month beginning July, according to the statement.
Ofgem chief executive Tim Jarvis urged consumers to explore fixing tariffs and switching payment methods from standard credit to direct debit to enable savings of around 143 pounds on bills.
Jarvis also said investments in energy networks will be unlocked to limit exposure to price volatility, while enhancing system security and resilience.