Energy bills in Britain to surge 13% in July as regulator lifts price cap to reflect higher gas price

British households already squeezed by the cost ​of living will face energy bills averaging £1,862 ‌a year from July after regulator Ofgem raised its price cap by 13%, blaming soaring wholesale gas ​prices driven by the conflict in the Middle ​East.

The hike by the regulator, a non-ministerial ⁠government department, comes as Prime Minister Keir ​Starmer is under intense pressure to relieve some of the ​economic fallout he has said is from the war.

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“Today’s price change reflects continued volatility in global energy markets. This ​means higher wholesale gas prices, driven by ​ongoing conflict in the Middle East, is impacting the ‌price ⁠we pay for energy,” Ofgem CEO Tim Jarvis said in a statement.

Wholesale energy prices are the largest single factor contributing to Ofgem's domestic price ​cap, which ​is set ⁠on a quarterly basis using a formula that also reflects suppliers' ​network costs and environmental and social levies. The ​new ⁠cap of £1,862 ($2,504) a year for average use