Failing to take simple action will mean some people will pay higher power bills
07:39, 01 Jul 2026Updated 07:39, 01 Jul 2026
BBC Breakfast correspondent Peter Ruddick said people should take a meter reading today(Image: BBC)
A BBC expert has told all customers for the major energy suppliers like Octopus Energy, British Gas, E.ON Next, OVO, EDF, and Scottish Power to take action today. Failing to take action will mean some people will pay higher power bills – as a 13% jump to the price cap takes effect.
The estimated 5.3 million households on standard tariffs who do not have a smart meter have been urged to take action to avoid paying for energy they have already used at the new, more expensive rates that take effect from Wednesday, July 1. Ofgem’s price cap sets the maximum amount firms can charge homes on standard tariffs per unit of gas and electricity.
Households who pay via direct debit will see electricity charges rise from the current rate of 24.67p a kilowatt hour to 26.11p, while gas charges will rise from 5.74p a kWh to 7.33p. Based on the new rates, the average gas and electricity bill will increase by £221 to £1,862 a year.
Appearing on BBC Breakfast correspondent Peter Ruddick said: “The energy price cap as you will know is set by the industry regulator every 3 months and it determines the maximum per unit price that can be charged for gas and electricity if you’re on a standard or default tariff. So not the fixed deals that many of us are on these days.
“We are still talking though about 33 million households in England, Scotland and Wales. From today the level of the price cap will go up by 13% meaning the average equivalent annual bill will be just over £1,862. Now, this remember is an average for a typical use household on a dual fuel tariff, paying their bills by direct debit. If you use more energy, you pay more. But the hope is that because this sharp rise today comes at a time in the summer when we typically use less energy, well, the impact won’t be as severe.”
Mr Ruddick said that it will have a monthly impact on households with the Middle East conflict causing gas prices especially to rise. He added: “It works out at about £18 a month more on average. But as I say, it’s the per unit prices that matter most. And these are the new charges for gas and electricity. The new costs from today, you can see actually It’s just under 2 p more uh for gas and electricity. So, a bigger percentage increase for gas and that’s because of the higher wholesale prices as a result of the conflict in the Middle East. Your bill also includes those standing charges, that daily fee to maintain the network that you pay, no matter how much energy you use or don’t use.
“The latest figures here, these actually largely unchanged from the previous 3 months. The good news is that the current forecast is actually for a very slight fall in the level of the price cap in October. That’s when it next changes. Oil and gas prices have come way off their recent highs thanks to the ceasefire in the Middle East and that should feed through to our bills. But the question is the problem is while that ceasefire remains fragile, the outlook for prices for our bills remains uncertain. So a little bit of an increase today, potentially a little slight drop in October, but everything quite uncertain. The real key today, take a meter reading and if you are on one of these standard variable tariffs, just have a Look and see if you could be getting a better deal by fixing.”
Uswitch energy spokesman Ben Gallizzi said: “There are two crucial things you should add to your to-do list for the coming days – submit a meter reading and get a cheap fixed energy deal.
“Millions of households should take a moment to read their meter at the end of the month to avoid being overcharged for their energy due to higher prices kicking in from July.”
Minister for energy consumers Martin McCluskey said: “We know families are deeply concerned about rising energy bills because of a war we did not choose, and we are determined to fight their corner to tackle energy affordability.
“The action we took at the budget, which has taken an average £150 of costs off energy bills, is now factored into bills for the years to come.
“We have also expanded the Warm Home Discount scheme, which benefitted around six million households last winter and will remain in place for the rest of the decade.
“We will continue to monitor the situation ahead of the winter and plan for all contingencies, while doubling down on our mission for clean power to bring down bills for good.”
The jump in the price cap comes as latest forecasts suggest bills are set to remain high throughout this winter, falling by only around 0.5% in October compared to July as the US-Iran 60-day ceasefire helps to stabilise wholesale gas markets, Cornwall Insight said.
However, it warned conflicting reports on the reopening of the Strait of Hormuz, the patchy progress of peace talks and uncertain timelines for repairing key regional infrastructure meant prices remained high, if less volatile than in the spring.
Cornwall said it expected a typical household to be facing a bill of £1,849 from October. While Ofgem is updating its definition of a typical consumer from July to reflect falling household energy use, which adjusts the headline figure to £1,654, Cornwall said this represented “little change” on a like-for-like basis.
While July’s higher prices will be cushioned by warmer weather and lower household energy use, the October cap will land as people switch their heating back on and will have a greater impact on household finances.
Prices rocketed after Iran responded to US and Israel attacks by blocking the Strait of Hormuz shipping route, through which a fifth of the world’s oil and gas is carried.
Ofgem will announce the next quarterly price cap level for October to December on or by August 26.