The big story this week: Ofgem confirms a 13% energy price cap rise from 1 July 2026
Ofgem has announced that the energy price cap will rise by 13% for the period 1 July to 30 September 2026. This affects customers on default (standard variable) tariffs—in other words, the tariff you’re most likely to be on if you haven’t fixed recently.
This isn’t just a headline number. The price cap changes the unit rates (what you pay per kWh of gas and electricity) and the standing charges (the daily cost of being connected). Because UK home heating is dominated by gas boilers and because hot water is used year-round, the impact is very real even in summer.
For homeowners across Bordon, Whitehill, Liphook, Alton, Farnham and Haslemere, this is the kind of change that can quietly add hundreds of pounds to annual energy spend if you do nothing—and it can also be the prompt to finally tighten up the parts of your heating system that leak money every day.
What actually happened (and who it hits)
The Ofgem price cap is designed to limit what suppliers can charge customers on standard variable tariffs. It’s reviewed and updated quarterly and reflects the costs suppliers face—especially wholesale energy costs—plus network costs, policy costs and operating allowances.
From 1 July, the cap level increases by 13%. Practically, that means:
- Higher gas and electricity unit rates for most customers on default tariffs.
- Standing charges may also change, depending on region and the way Ofgem has set the allowance for network and operating costs.
- The rise applies across the country, but your exact rates depend on your region and meter type.
If you’re on a fixed deal, you’re insulated until that fix ends. If you’re on a smart tariff, tracker, or bespoke product, the cap may not apply in the same way. But a large proportion of households—especially those who have rolled off fixes—will feel this directly.
Why it matters: heating is still your biggest controllable energy cost
Even though the price cap period covers summer, it shapes your bills in three important ways:
1) Hot water doesn’t take a summer holiday. If you have a combi boiler, your domestic hot water demand continues every day. If you have a system boiler with a cylinder, you’re paying to heat and store hot water—sometimes more often than you need.
2) Inefficiency is more expensive when unit rates rise. A boiler at 75–80% efficiency costs noticeably more to run than one operating correctly at 88–92% once you factor in controls, flow temperatures and cycling.
3) Summer is when you can fix issues without disruption. Winter breakdowns are stressful and they’re often the most expensive time to respond. July is the perfect moment to service, balance, and upgrade controls while you’re not reliant on heating daily.
What it means technically (plain-English version)
When energy prices rise, homeowners often ask, “Should I replace the boiler?” Sometimes yes—but in many homes the biggest win comes from making the existing system operate properly.
Boiler efficiency isn’t a fixed number—it depends on how it’s set up
Modern condensing boilers are designed to reclaim heat from the flue gases. They do that best when the return water temperature back to the boiler is low enough for condensation to occur. In practice, that usually means running lower flow temperatures, especially for central heating.
If your boiler is set to a high flow temperature (common after installs or powerflushing), it may still heat the house—but it will spend less time condensing and more time behaving like an older, less efficient boiler. With higher unit rates from July, those wasted kWh cost more.
Controls make a bigger difference than most people realise
A well-controlled heating system is not “on or off.” It’s responsive. The main upgrades that affect real-world running costs include:
- A programmable room thermostat (or smart thermostat) to reduce unnecessary run time.
- TRVs (thermostatic radiator valves) so rooms don’t overheat.
- Weather compensation / load compensation where compatible, allowing the boiler to modulate more smoothly.
In towns like Haslemere and Farnham, where a lot of housing stock includes extended period properties and mixed radiator sizing, proper controls can stop the common cycle of overheating one end of the house while another stays cool.
Standing charges mean “using less” isn’t the whole answer
A standing charge is a fixed daily cost, so you can’t eliminate it through efficiency. That’s why, with price cap rises, it’s sensible to tackle both sides:
- Reduce consumption (efficiency, controls, insulation, repairs).
- Review tariffs (fixing, switching, checking eligibility for support).
What it means financially: where the extra cost really comes from
A 13% rise in the cap doesn’t translate neatly into “my bill rises 13%,” because your total spend depends on usage, property type, how many people live there, and whether you’re gas-heated, electric-heated, or using a heat pump.
But the direction of travel is clear: each wasted unit now costs more. That changes the payback calculation on several common improvements.
What typically pays back faster when prices rise
Here’s how the economics tend to shift when unit rates increase:
- Boiler service and combustion check: Not glamorous, but it can prevent inefficient burning, reduce cycling issues and catch early faults that become expensive failures later.
- Control upgrades: If your thermostat is old, poorly located, or you’re effectively running “manual,” you’re often heating the house longer than needed.
- Reducing boiler flow temperature (when appropriate): This is one of the cheapest changes with a meaningful impact on gas usage, particularly in milder weather.
- Radiator balancing: Helps rooms reach temperature evenly, reducing the temptation to “just turn it up,” and improving boiler modulation.
- Insulation and draught-proofing: Especially loft insulation top-ups and sealing obvious drafts around doors and old sash windows.
For homeowners around Alton and Liphook, where you’ll find plenty of family homes with loft space and accessible pipework, the quick wins often come from a combination of controls plus basic fabric improvements.
What it means locally: Bordon, Whitehill, Liphook, Alton, Farnham and Haslemere
The price cap is national, but the reality on the ground varies with housing stock and how people heat their homes.
Older, larger properties (common around Farnham and Haslemere)
Period homes and larger detached properties can have:
- Higher heat loss (solid walls, single glazing, lots of external wall area)
- Multiple hot water outlets and longer pipe runs
- Older radiators or mixed upgrades over time
Practically, that means your priority should be controls, zoning and flow temperature optimisation, paired with sensible insulation measures. Where budgets allow, a heat-loss assessment can stop you spending money in the wrong place (for example, fitting oversized boilers or running excessive temperatures).
Post-war and modern estates (common across Bordon and Whitehill)
Many properties here are more standardised, which can make improvements straightforward and cost-effective. If your home has a modern-ish condensing boiler but bills still feel high, it’s often due to:
- Poor thermostat placement
- No proper scheduling
- Unbalanced radiators
- Boiler set to unnecessarily high heating temperature
These are all areas where a good engineer can make measurable improvements without major disruption—exactly the sort of practical response that makes sense when the cap rises.
Rural edges and mixed systems (around Liphook and Alton)
In and around these areas, you may come across homes with:
- Older system boilers and hot water cylinders
- Secondary heating (wood burners, electric heaters)
- Outbuildings, annexes or extensions added over time
Here, the hidden costs often sit in hot water settings and timers. Many cylinders are heated longer than needed, or heated at the wrong times. Getting the hot water schedule right—plus insulating the cylinder and primary pipework—can cut gas use year-round.
What homeowners should do next (practical steps that actually help)
1) Check what tariff you’re on before 1 July
Log into your supplier account (or check a recent bill) and confirm whether you’re on a standard variable tariff. If you are, you’ll be moved automatically onto the new capped rates. Consider:
- Whether a fixed tariff is available and suitable for your household’s risk appetite
- Whether you’re eligible for any supplier support schemes or payment plans if bills are tight
Don’t guess—people often assume they’re “fixed” when they’re not, especially after a deal ends.
2) Set your boiler to run efficiently (without losing comfort)
If you have a combi or system boiler with radiator heating, look for the central heating flow temperature setting (not the hot water temperature on a combi). Many homes run at 70–80°C out of habit. In plenty of properties, you can drop that and still stay comfortable—particularly in spring/autumn—and the boiler will condense more often.
As a sensible starting point, many homeowners try 60°C for radiators and improve from there, but the “right” temperature depends on radiator sizing and heat loss. If lowering it means rooms struggle to reach temperature in cold snaps, it needs proper assessment rather than simply turning it back up permanently.
3) Stop heating water you don’t use
If you have a hot water cylinder:
- Check the timer: you usually only need one or two heat-up periods per day, depending on household size.
- Set the cylinder stat correctly (typically around 60°C for stored hot water for hygiene and performance).
- Make sure the cylinder has a good jacket, and insulate exposed primary pipework—especially in airing cupboards.
For combi boilers, the big one is hot water preheat (if fitted). It improves tap response time but keeps the boiler ready to fire, which can increase gas use. If you’re out during the day, switching preheat off may save money.
4) Book a service before the autumn rush
Servicing is about safety first (checking combustion, ventilation, condensate, and flue integrity), but it’s also about preventing small inefficiencies becoming expensive problems. A decent service can identify:
- Early signs of heat exchanger issues
- Poor burner performance
- Low system pressure trends or expansion vessel faults
- Controls that aren’t talking properly to the boiler
In areas like Bordon and Whitehill, where many households try to book repairs at the first cold snap, getting in early is one of the simplest ways to avoid being stuck in a queue later.
5) Treat cold rooms as a system problem, not “a bigger radiator” by default
If one room in your home in Farnham or Haslemere is always cold, it might need a radiator upgrade—but it could just as easily be:
- An unbalanced system (radiators stealing flow)
- A stuck TRV or lockshield
- Sludge restricting circulation
- An undersized pipe run to an extension
Throwing a larger radiator at the problem can mask the issue and push you to run higher flow temperatures. Diagnosing properly helps you stay comfortable at lower temperatures—exactly what you want when unit rates rise.
The bigger picture: price cap rises make “wasted heat” the most expensive heat
It’s easy to feel like energy prices are something that happens to you. But once the rate per kWh increases, the value of good heating engineering increases too. The households that come through these price swings best are usually the ones with:
- A safe, well-maintained boiler or heat pump
- Controls that match how they actually live
- Reasonable flow temperatures and balanced heat delivery
- Basic insulation and reduced draughts
Whether you’re in a newer property in Liphook, a family home in Alton, or an older place near Haslemere, the next few weeks are a good window to reduce consumption before the next winter demand spike arrives.
If you want help checking your boiler settings, upgrading controls, balancing radiators, or planning a longer-term efficiency upgrade, book a visit with Embassy Gas: https://www.embassygas.com/book | (01420) 558993 | helpdesk@embassygas.com