Energy bills in Britain to jump 13% in July as Ofgem lifts price cap to reflect higher gas price

May 27 (Reuters) - British ​households already squeezed by the cost of living will face ​energy ‌bills averaging £1,862 a year from July after regulator Ofgem ⁠raised its price cap by 13%, ⁠blaming soaring wholesale ​gas prices driven by the conflict in the Middle East.

The hike by the regulator, a non-ministerial government department, ​comes ‌as Prime Minister Keir Starmer is under intense pressure to relieve some of the economic fallout he has said is from the war.

“Today’s ​price change reflects continued volatility in global energy markets. ‌This means higher wholesale gas prices, driven by ongoing conflict in the Middle ‌East, is impacting the price we pay for energy,” Ofgem CEO Tim Jarvis said in a statement.

Wholesale ​energy prices are the largest single factor contributing to 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.

The new ‌cap of £1,862 ($2,504) a year for average use of electricity and ​gas is ​up around £221 from the previous ‌cap for April-June of £1,641 a year.