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Ofgem Sets 4% Energy Price Cap to £1,729

8/19/2026

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Story summary
  • Ofgem will set a 4% price cap on Wednesday, raising the annual bill to £1,729.
  • The cap lifts electricity to 26.57p/kWh and gas to 7.90p/kWh, ending £45-per-year VAT cut promised by Andy Burnham and triggering a £150 discount for six million households.
  • Consultant Craig Lowrey said the rise reflects Middle East war volatility and heatwaves, showing Britain’s reliance on imported gas and warning of increase in January if tensions continue.