UK's Ofgem Lifts Energy Price Cap by 4% Amid Higher Wholesale Costs

02:42 AM EDT, 08/26/2026 (MT Newswires) -- The UK's Office of Gas and Electricity Markets, or Ofgem, said Wednesday that the energy price cap will rise 4% for the three months ending Dec. 31, driven by increased wholesale costs linked to the Middle East conflict. Based on the regulator's existing typical domestic consumption values, the annual bill for a typical household paying by direct debit will increase to 1,723 pounds sterling from October, compared with 1,663 pounds previously. Ofgem added that value-added tax on all electricity bills, including those covered by the price cap, will be cut from 5% to zero between Oct. 1, 2026, and March 31, 2027.