Finance
Britain's Energy Price Cap to Rise 18% in July, Cornwall Insight Says
Published by Global Banking & Finance Review®
Posted on March 31, 2026
2 min readLast updated: March 31, 2026
Add as preferred source on GoogleQuick Summary
Cornwall Insight now forecasts that Britain’s domestic energy price cap will rise by around 18–20% in July 2026 to about £1,973 per year, as geopolitical tensions drive up wholesale costs despite some recent forecast downgrades.
Britain's Energy Price Cap Projected to Increase by 18% This July
Overview of the Projected Energy Price Cap Increase
LONDON, March 31 (Reuters) - Britain's domestic energy price cap is forecast to rise by about 18% in July, analysts at Cornwall Insight said on Tuesday, lowering their forecast slightly as wholesale energy markets steadied.
Government Response and Constraints
-
Potential Actions by Finance Minister
Finance minister Rachel Reeves has said she would consider action to shield households from surging energy costs but is constrained by the country's high borrowing costs.
Factors Influencing the Price Cap
-
International Market Disruptions
Middle East Shipping and LNG Exports
Disruptions to shipping in the Middle East and a halt to liquefied natural gas exports from Qatar, one of the world's largest gas exporters, have led to a surge in international gas prices.
-
Wholesale Energy Prices and Ofgem's Formula
Price Cap Calculation and Contributing Factors
Wholesale energy prices are the largest single factor contributing to British energy regulator 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.
Forecast Details and Timeline
-
Updated Forecast Figures
Cornwall Insight forecasts Ofgem's price cap will rise in July to 1,929 pounds ($2,549.17) a year for typical use, up 288 pounds from 1,641 pounds in April.
The analysts had previously forecast a 20% rise in July.
-
Upcoming Ofgem Announcement
Ofgem is expected to publish the next price cap level by May 27.
($1 = 0.7567 pounds)
(Reporting By Susanna Twidale; Editing by Arun Koyyur)
Key Takeaways
- •Cornwall Insight adjusted its July cap forecast to approximately £1,973—a near £332 rise from April’s £1,641, equating to about a 20% increase (forbes.com).
- •The forecast timing reflects ongoing volatility from Middle East disruptions, with the official Ofgem cap due to be announced by May 27 and take effect on July 1 (theweek.com).
- •This upward revision underscores the continuing exposure of UK households on variable tariffs to global market swings, particularly amid the Iran‑conflict driven disruption to shipping and LNG supplies (uk.finance.yahoo.com)
References
Frequently Asked Questions about Britain's energy price cap to rise 18% in July, Cornwall Insight says
1What factors are driving the increase in the energy price cap?
Rising wholesale energy prices, shipping disruptions in the Middle East, and halted liquefied natural gas exports from Qatar are major factors.
2Who sets the energy price cap in the UK and how often is it updated?
Ofgem sets the UK's domestic energy price cap quarterly, considering wholesale prices and supplier costs.
3When will Ofgem publish the next price cap level?
Ofgem is expected to publish the next energy price cap level by May 27.
4What has the UK finance minister said regarding support for rising energy costs?
Finance minister Rachel Reeves has said she would consider taking action to shield households, but faces budget constraints.
