Energy Bills to RISE £332 in July – Here’s How to Save

Household energy bills could surge by £322 per year in July, market analysts Cornwall Insight predict.

Experts anticipate that summer energy bills will rise to higher than expected levels due to the escalation of the US-Israel war on Iran.

Even if wholesale energy prices return to the levels seen before the conflict, the rapid price changes in oil and gas are likely to be baked into the next energy price cap which covers July to September.

The energy price cap, which is determined by the regulator Ofgem, sets the maximum amount that suppliers can charge households for each unit of gas and electricity they use.

The next price cap which comes into effect from April 1 and runs to June 30 2026, will fall 7% to £1,641, saving households around £117 per year on average.

Ofgem sets the cap every three months and it applies to millions of households in England, Scotland and Wales.

The levels for the period 1 July to 30 September will be announced by 27 March 2026.

How can you save on energy bills now?

Check your tariff: if you’re on a standard variable tariff or your fixed-rate tariff is due to end around 1 April, switching onto a fixed-rate tariff can help you cut the cost of your energy.

Pay by Direct Debit: Paying by Direct Debit is usually cheaper because you don’t have to pay admin costs. Currently, 8 million customers pay by standard credit but could save around £136 per year by switching to a Direct Debit payment.

Shop around: price comparison can help you compare lots of energy deals quickly and find the best value. Remember to watch out for exit fees which could make your tariff more expensive if you want to switch again before the deal ends.

Get energy efficient: with winter on the way it’s more important than ever to conserve your energy. Taking steps to insulate your home can help you save on heating costs. While cutting back on energy waste by switching off lights, appliances and technology when they’re not in use can help you save too.

Apply for support: check if you’re eligible for support from the government such as the Warm Home Discount or your energy supplier, to help you afford the cost of heating and powering your home.

Create a budget: making a budget can help you identify other areas in your life to try and make a saving. A budgeting app can help you automate the process and get started on cutting costs.

What happens if I can’t pay my energy bills?
If you’re worried that you won’t be able to pay your energy bills, it’s important to act quickly to get help.

Contact your energy supplier as soon as possible to arrange a payment plan which you can reasonably afford. Customers on a prepayment meter can request emergency credit if they’re unable to top up.

If you’re already struggling with your bills and have fallen into debt, contacting organisations such as StepChange or Citizens Advice can help you access free advice.