British households will face higher energy bills averaging £1,862 a year ‌from July after regulator Ofgem hiked its price cap by 13% on soaring wholesale gas prices caused by the conflict in the Middle East.

The increase, up around £221 from the previous cap of £1,641 for April to June, will hit millions of households on variable tariffs, with analysts warning bills could climb further if disruption ​to shipments through the Strait of Hormuz persists.

The rise piles further pressure on Prime Minister Keir Starmer as households struggle ​with rising living costs.

“The rise in the price cap because of a war we did not choose ⁠is deeply unwelcome news for households across the country.

We know people were under pressure before this crisis, and that’s why ​easing that burden is our number one priority,” Energy Minister Ed Miliband said in a statement.

Wholesale British gas prices are around ​45% higher than they were before the United States began military action against Iran on February 28, blocking the transit route for a fifth of the world’s liquefied natural gas.

Calls for more help

Consumer groups urged the government to lay out plans to provide support for ​households.

“Now is the time for the government to set out targeted interventions to help those on the lowest incomes afford their energy and to ‌clear their ⁠debt,” National Energy Action Chief Executive Adam Scorer said.

The government says its push to reduce reliance on gas and increase renewable capacity, such as wind and solar, will cut costs in the longer term.

In April, it also shifted some levies to cut around £150 from an average bill.

Even so, the new price cap is around 46% higher than in the winter of 2021/22, before Russia’s ​invasion of Ukraine led to a ​spike in global energy prices.

Further rises expected

With Iran-US tensions unresolved, Cornwall Insight forecasts the cap rising further to £1,899 from October.

Britain’s economy has struggled to grow in recent years, and the higher energy prices could further weigh on ​confidence.

Recent data shows Britons are the least willing to make big purchases in almost a year ​and a half, ⁠while shoppers are buying fewer items and hunting for cheaper deals when buying food.

The BoE expects consumer price inflation to reach about 4% by the end of the year.

British inflation has been above the BoE’s 2% target for all but a few months of the ⁠past five ​years.

Ofgem said people are using less gas and electricity than before, so its ​next typical household energy use figure will reflect that.

The price cap on standard tariffs was introduced in 2019 and covers about two-thirds of households.