The big story this week: the price cap is going up again
Ofgem has announced that the energy price cap will rise by 13% for the period 1 July to 30 September 2026. This matters because the cap sets the maximum unit rates (what you pay per kWh) and standing charges (the daily fixed cost) for households on default tariffs in England, Scotland and Wales.
It’s easy to hear “price cap” and assume it caps your total bill. It doesn’t. It caps the rates, so if you use more energy (common in homes with older boilers, poor controls, or leaky insulation), your bill can still be high even under the cap.
For most homes around Bordon, Whitehill, Liphook, Alton, Farnham and Haslemere, this is primarily a heating story. Many properties locally are gas-heated, and even where electricity is used for cooking or some room heating, hot water and central heating tend to dominate winter costs. A cap rise going into late summer may feel oddly timed—until you remember it’s often when households catch up on estimated bills, back-billing adjustments and start preparing systems for autumn use.
What actually happened (and who it affects)
Ofgem’s update confirms that from 1 July, suppliers can charge more under the cap, reflecting changes in the underlying costs they face—particularly wholesale gas prices. The cap applies to:
- Default tariffs (often called Standard Variable Tariffs, SVTs)
- Prepayment meter tariffs (with their own capped rates)
It does not automatically change the price you pay if you’re on a fixed tariff—your fix remains as per your contract until it ends. But once a fix ends, many households roll onto a default tariff, and then the cap becomes relevant again.
Ofgem also confirms the cap includes both:
- Unit rates: the price per kWh of gas and electricity
- Standing charges: a daily fee to cover network costs, metering, and some policy costs (paid regardless of usage)
Why it’s happening: the link between wholesale gas and your boiler
Most UK homes that heat with a boiler are still ultimately exposed to the international gas market. Even if you personally use “only a bit of gas in summer”, the price cap is built on forward-looking wholesale costs and other components, and this quarter Ofgem points plainly to higher wholesale gas prices.
That matters for two reasons:
- Gas is a direct fuel for boilers—so a higher gas unit rate immediately increases the cost of every hour your heating or hot water runs.
- Gas influences electricity prices in the UK, because gas-fired generation often sets the marginal price in the power market. So even if your home has electric showers, tumble drying, or electric heaters, gas market movements can still show up on your electricity rate.
In plain English: even if your boiler is fine, the fuel it runs on is costlier this quarter, and the cap is adjusting to that.
What it means technically: unit rates, standing charges, and the real cost of heat
Homeowners often focus on the headline percentage rise, but the practical impact depends on how your home uses energy. Two technical points are worth understanding.
1) Standing charges hit “low users” hardest
Standing charges are a fixed daily cost. If you’re out at work all day, keep heating low, or live in a smaller flat in Farnham or Haslemere, a high standing charge can make up a bigger portion of your bill than you expect. That’s why “using less” doesn’t always reduce bills proportionally.
It’s also why correct billing matters. If you’ve moved home recently in Liphook or Whitehill and your opening meter read was wrong, you can end up paying inflated charges that have nothing to do with your current usage.
2) With gas boilers, efficiency and controls decide how much you buy
The energy price cap affects how much each kWh costs. Your boiler and heating system decide how many kWh you need to stay comfortable.
As a rule of thumb:
- An older non-condensing boiler may deliver roughly 60–75% seasonal efficiency.
- A modern condensing boiler, correctly set up, typically achieves 85–92% seasonal efficiency.
That difference is huge when prices rise. If you need 12,000 kWh of useful heat across a year:
- At 70% efficiency, you might burn ~17,100 kWh of gas.
- At 90% efficiency, you might burn ~13,300 kWh of gas.
When the unit rate goes up, the cost gap between “efficient” and “wasteful” widens. This is why price cap increases should push homeowners to think about system setup and controls, not just tariffs.
What it means financially: who will feel it most (and why)
The cap rise will be most noticeable for households who:
- Are on a default tariff and haven’t reviewed it in a while
- Use larger volumes of gas for heating and hot water (bigger family homes around Alton, or draughtier properties on the edges of Bordon and Whitehill)
- Have a boiler that short-cycles, runs too hot, or is poorly controlled
- Have older hot water cylinders without decent insulation, or immersion heaters running unnecessarily
There’s also a cashflow angle: if you’re on Direct Debit, suppliers often adjust payments based on forecast annual usage. A cap rise can trigger a mid-year direct debit increase—sometimes before you personally feel you’ve used much extra energy. That’s not always wrong, but it’s worth checking whether your account is based on accurate reads and realistic consumption.
Local relevance: what we see in homes around Bordon, Whitehill, Liphook, Alton, Farnham and Haslemere
Across this patch of Hampshire and Surrey, we regularly see a few patterns that make price changes bite harder than they need to:
- Mixed housing stock: from newer estates to older cottages and 1930s–1970s homes. Older properties around Haslemere and parts of Farnham can have higher heat loss, meaning more gas purchased per degree of comfort.
- Combination boilers under strain: combis are common, but many are set to maximum flow temperature year-round, which reduces condensing efficiency and increases running costs.
- Smart thermostats installed but not optimised: plenty of homes in Liphook and Alton have modern controls, but schedules, radiator balancing, and flow temperature settings often lag behind.
- Oil/LPG pockets: while the cap is about mains gas and electricity default tariffs, some outskirts still rely on alternative fuels. Those homes are still exposed to electricity cap changes, and the general market trend often influences supplier pricing behaviour.
The point isn’t that everyone needs a new boiler. It’s that when the price per kWh rises, wasted heat becomes more expensive heat.
What homeowners should do next: practical steps that genuinely cut cost
If you’re on a default tariff and your prices rise on 1 July, you’ve got two levers: price per kWh (tariff decisions) and kWh used (how your home is heated). Here’s what’s worth doing—without gimmicks.
Step 1: Check whether you’re on a default tariff (and whether a fix is sensible)
Look at your latest bill or app. If it says Standard Variable, Default, or you can’t see an end date, assume you’re on the cap. Compare with fixed deals carefully. Fixed tariffs can be useful for certainty, but only if the numbers stack up and you understand any exit fees.
If you’ve recently come off a fix, don’t let it silently roll over—this is exactly when many households in Farnham and Haslemere get caught paying more than expected.
Step 2: Take (and submit) accurate meter readings
This sounds basic, but it’s the fastest way to stop estimated billing compounding a cap increase. Submit readings for gas and electricity, especially if you’ve had a change of occupant, any building work, or long periods away.
If you have a smart meter, check it’s actually communicating; “smart” doesn’t always mean it’s sending reliable reads.
Step 3: Lower your boiler flow temperature (most homes can do this today)
If you have a condensing boiler, you want it to spend as much time as possible condensing (recovering extra heat from the flue gases). The simplest way is reducing the central heating flow temperature.
- Many boilers are set to ~70–80°C for heating.
- For typical radiator systems, a good starting point is often 55–60°C (then adjust if the house struggles on colder days).
Done right, this can reduce gas use without making rooms cold—it just means radiators may feel warm rather than scorching, and the boiler runs more steadily and efficiently.
Important: don’t confuse heating flow temperature with hot water temperature. If you have a hot water cylinder, stored hot water needs to be controlled safely (including periodic pasteurisation/legionella considerations depending on system). If you’re unsure, get advice before changing cylinder settings.
Step 4: Use controls properly—especially in shoulder seasons
July to September is when heating use is low, but hot water demand stays. If your boiler is firing up frequently in summer, check:
- Are you running a timed heating schedule you don’t need?
- Is hot water set to “on” permanently when a timed programme would do?
- Is a smart thermostat trying to maintain temperature all day unnecessarily?
For many households in Bordon and Whitehill, simply tightening schedules and using “boost” tactically can shave usage without any comfort loss.
Step 5: Balance radiators and address the usual efficiency killers
When some radiators heat fast and others lag, people often turn the thermostat up—and pay for it. Basic system health checks include:
- Bleeding radiators if there are cold spots at the top
- Checking boiler pressure (if it’s a sealed system) and topping up correctly when needed
- Balancing so heat is distributed evenly
- Magnetic filter maintenance and inhibitor levels to reduce sludge-related inefficiency
If you’re in an older property near Alton or Haslemere with microbore pipework, proper balancing and pump setup can significantly improve comfort and reduce run time.
Step 6: Service timing—don’t wait for the first cold snap
A price cap rise isn’t a boiler fault, but it’s a reminder to make sure your system is operating efficiently before demand ramps up again in autumn. Booking a service in late summer is often easier than in October/November, and it gives time to fix issues like failing fans, worn seals, ignition problems, or poor combustion.
A well-serviced boiler won’t magically beat market prices, but it will ensure you’re not paying extra due to incomplete combustion, cycling problems, or incorrect gas pressure/air settings.
The bigger takeaway: the cap protects you from spikes, not from waste
Ofgem’s cap is designed to limit what suppliers can charge on default tariffs, and it does provide a buffer against extreme volatility. But it doesn’t make energy “affordable” by itself, and it doesn’t prevent higher bills when wholesale costs rise.
The homeowners who cope best with cap increases are usually the ones who treat heating like a system: boiler setup, controls, insulation basics, and accurate billing. That approach works in a terrace in Farnham, a family home in Alton, or a cottage outside Haslemere—the details change, but the principle doesn’t.
If you’d like help reducing your heating running costs ahead of autumn—whether that’s a boiler service, controls advice, or sorting out an inefficient setup—call (01420) 558993, email helpdesk@embassygas.com or book at https://www.embassygas.com/book.