Energy prices in Great Britain will go up in July. The regulator, Ofgem, says the price cap will rise by 13%. This means the average annual bill for gas and electricity will rise to ยฃ1,862. Before this change, the average bill was ยฃ1,641. Now, families will pay about ยฃ221 more every year.
This change affects people in different ways. For many households, the monthly bill will increase by about ยฃ18. Gas bills will rise by 24%, but electricity bills will only rise by 5%. This is because gas prices are changing more quickly than electricity prices.
Why are prices rising? The main reason is the global energy market. Prices for gas and oil change often because of problems in other parts of the world. For example, when shipping routes have problems, the cost of energy goes up for everyone. These global changes eventually affect the monthly bills of people in the UK.
Not everyone will pay more money immediately. About 40% of people have "fixed tariffs." These people have a contract with a set price. Their prices will stay the same for a long time. Only people on "variable tariffs" will see the higher costs in July.
Many families must now plan their budgets for the summer. The cost of heating and cooking will be higher. It is difficult to predict future prices because the global market is very unstable right now.