Martin Lewis on new Energy Price Cap: For most people, July’s 13% Energy Price Cap rise is voluntary – it can and should be avoided

Today, the energy regulator Ofgem has announced that the Price Cap will rise by 13% from 1 July 2026.

Please see MSE's live news story for full details on the change and what this means for energy bills, including new 'Am I on the Price Cap' checker tool.

Reacting to the announcement, Martin Lewis, founder of MoneySavingExpert.com, said: "The Middle East conflict will finally force its way onto most people’s energy bills from July, with a 13% rise in the Price Cap. The hit will be biggest for higher users, especially those who use gas, as the change is in the cost of each unit of energy used rather than the daily standing charge. The gas unit rate is up 28%, with electricity up 6%.

While there’ll understandably be much argument in political circles about who or what’s to blame, the key for consumers’ pockets is that these changes only apply to those on firms’ bog-standard tariffs. Those on fixes won’t see a rise. And that means everyone on the Price Cap should consider getting off it, if they can, for example, by locking in a fixed rate below the current Cap – up to 3% below. Do that, and you start saving straight away, and then from July the fix will be 14% cheaper than the Cap.

By October, things for those who stay on the Price Cap are likely to be even worse, with it predicted to rise again by a couple of percent. And even if the conflict in the Middle East ended tomorrow, while that may mean the Cap drops a bit rather than rises in October, it’s unlikely we’d see it return to where it is today. So, fixing seems the risk-averse bet for most.

Sadly, cheap fixes aren’t available for those on prepayment meters, but most people paying by direct debit can lock in cheaper deals. Don’t stick with your own firm’s fix though, many firms don’t have cheap deals. Your exact cheapest tariff depends on usage and where you live, so ensure you do a whole-of-market comparison. The MSE Cheap Energy Club does that by default. If you’re using other comparison sites, be careful - most hide tariffs that don’t pay them, and the cheapest fixes at the moment often don’t pay. So, ensure you find the small ‘show all tariffs’ button on the page."

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