The big story this week: Ofgem’s price cap is going up again
On 27 May 2026, Ofgem confirmed that the energy price cap for default tariffs will increase by 13% for the period 1 July 2026 to 30 September 2026. This is not a “cap on your bill” in the way many people assume. It’s a limit on what suppliers can charge per unit of energy (kWh) and as a daily standing charge for customers on standard variable (default) tariffs.
For homeowners, this matters because heating is the single biggest energy use in most UK homes. Even in summer, this change affects what you’ll pay for hot water, cooking and general electricity use. And crucially, the July–September window is when many households are deciding whether to fix, whether to improve insulation, and whether to invest in controls before autumn. In practical terms: if you do nothing, you could find your running costs noticeably higher going into the latter part of the year.
What happened (in plain English)
Ofgem recalculates the cap every quarter. It looks at recent wholesale energy costs, network costs, policy costs and operating allowances for suppliers, then sets new maximums for:
- Unit rates (what you pay per kWh of gas and electricity)
- Standing charges (a daily fee to be connected, regardless of usage)
This week’s announcement means that for anyone on a default/standard variable tariff, suppliers can charge more from 1 July. Some fixed tariffs may still be available, but the cap directly shapes the wider market—when the cap rises, “reasonable” fixed deals tend to move up as well.
Why it matters: heating is where the money goes
If you heat your home with a gas boiler (the most common setup in Bordon, Whitehill, Liphook, Alton, Farnham and Haslemere), your bill is typically dominated by gas consumption between October and March—but your costs per unit are set long before that consumption hits. A July cap rise can therefore influence:
- What you pay for domestic hot water all summer
- What you pay for drying clothes, cooking and appliances
- The baseline cost of heating season planning (controls, servicing, upgrades)
- Your ability to build a buffer before higher winter usage
For all-electric homes (including some flats and newer installs using heat pumps or electric heating), the impact can be even more immediate because electricity is used year-round and for more end uses.
What it means technically: how the cap links to your boiler, controls and heat loss
The price cap is a pricing mechanism—not a change to how your boiler operates—but the knock-on effects are very real because it alters the value of every efficiency improvement you make.
1) Boiler efficiency becomes “more valuable” as unit rates rise
A modern condensing boiler can be very efficient, but only if it’s set up correctly. Small adjustments can shift it from “okay” to “properly condensing”, which is where the savings are.
Two common technical points:
- Flow temperature: If your boiler is running unnecessarily hot (common), it spends less time condensing and uses more gas. Many homes still run 70–80°C flow temperatures out of habit.
- Return temperature: Condensing boilers are most efficient when the return temperature is low enough to trigger condensation in the heat exchanger.
As the cap rises, every wasted kWh costs more. The same “inefficiency” becomes more expensive, so tuning the system pays back faster.
2) Heating controls have a bigger payback than most people think
If you’ve got a boiler that’s basically “on/off” with a simple timer, your heating may be cycling wastefully. Better control doesn’t just mean comfort—it reduces the number of unnecessary starts, overshoot, and heating rooms you aren’t using.
In plain English, good controls do three things:
- They match heat output to demand more smoothly
- They prevent overheating
- They reduce runtime without making the house feel cold
Smart thermostats aren’t essential for everyone, but a properly configured programmable room stat, TRVs, and (in many homes) weather compensation can make a noticeable dent in consumption.
3) Standing charges make “using less” alone less satisfying—so you must tackle unit use intelligently
Standing charges mean there’s a fixed daily cost whether you use energy or not. That can make homeowners feel like savings are impossible. They aren’t—but it changes the strategy: you focus on the big hitters (space heating, hot water, and insulation) rather than obsessing over tiny appliance savings.
What it means financially: where the extra cost usually shows up
A 13% cap rise doesn’t automatically mean your individual bill rises by exactly 13%—usage patterns, tariffs, payment method and meter type all matter. But for most households on a default tariff, it does mean higher unit rates and/or standing charges from July.
From a homeowner’s perspective, the key financial point is this: the cheapest kWh is the one you don’t have to buy. When unit prices rise, the return on:
- a boiler service that improves combustion and safe operation
- balancing radiators and correcting flow temperatures
- adding/using thermostatic controls properly
- draft-proofing and loft insulation top-ups
…all improves because the same reduction in consumption is now saving you more per unit.
A realistic example (not sales talk)
Say your household is typical for the area—gas boiler, radiators, combi or system boiler, and you currently run hot water daily plus occasional heating on cooler evenings. If you reduce gas use by even a modest percentage through better settings and controls, the pounds-and-pence saving rises when the cap rises.
The numbers vary, but the principle doesn’t: higher prices shorten payback periods for efficiency measures.
What it means locally: Bordon, Whitehill, Liphook, Alton, Farnham and Haslemere
Homes across East Hampshire and the Surrey borders are a mix: older cottages with thick walls, 1930s–1970s properties with variable insulation standards, and newer developments with better fabric but sometimes poorly optimised heating controls.
Here’s how the price cap rise tends to land locally:
- Older properties in Farnham and Haslemere often have higher heat loss, so your “baseline” heating requirement is bigger. That makes insulation, draught-proofing, and flow-temperature optimisation especially worthwhile.
- Bordon and Whitehill include a good number of family homes where heating schedules can be messy (school runs, hybrid working). Smarter zoning (even just using TRVs correctly) matters a lot.
- Liphook and Alton have a mix of countryside-edge homes where outbuildings, annexes and long pipe runs can lead to hot water and heating losses—insulating pipework and tightening hot-water schedules can bring quick wins.
Also worth mentioning: rural-edge areas sometimes have properties not on mains gas (LPG or oil). The Ofgem cap doesn’t set LPG/oil prices, but it does influence behaviour and budgeting because electricity is still capped and most homes still use electricity for pumps, controls, cooking and appliances. If you’re on oil, this is still a good moment to optimise controls and reduce heat loss—because every fuel market has been volatile, not just gas.
What homeowners should do next (practical steps that actually help)
1) Check what tariff you’re on and when it changes
If you’re on a standard variable/default tariff, you’re the most exposed to the cap change on 1 July. If you’re on a fixed deal, check the end date and what you’ll roll onto afterwards.
Also check whether you have a smart meter—and if not, submit regular readings. Estimated billing can hide changes and make it harder to track improvements.
2) Optimise your boiler settings for efficiency (without breaking comfort)
For many condensing gas boilers, one of the most effective homeowner-accessible changes is reducing the central heating flow temperature—provided the home still heats up properly. Many properties can run comfortably at lower temperatures, especially in milder weather.
Important: don’t randomly change settings you’re unsure about. If you have a combi boiler, the hot water temperature is separate and should remain safe and comfortable. If you’re concerned about hot water hygiene on stored systems (cylinders), you need to be careful about temperatures and legionella control—get advice rather than guessing.
3) Use thermostats and TRVs properly (most homes don’t)
Common mistakes we see across the area:
- Room thermostat in a hallway while the hallway radiator has a TRV turned down (the boiler runs longer because the thermostat never reaches temperature).
- TRVs used like on/off switches, constantly changing day to day.
- Heating schedules set too early “just in case”, then windows opened because rooms overheat.
Set a steady schedule that matches your routine, keep the reference room (where the thermostat is) sensible, and use TRVs to trim back bedrooms and little-used spaces rather than throttling everything.
4) Get your system checked before the autumn rush
A price cap rise is a reminder that efficiency and reliability are part of the same conversation. A boiler that’s short-cycling, losing pressure, suffering from sludge, or running with incorrect gas/air settings can cost more to run and is more likely to fail when you need it.
Ask for checks that genuinely affect performance and longevity, such as:
- combustion analysis (where appropriate)
- system pressure and expansion vessel checks
- radiator balance and pump operation
- magnetic filter condition (if fitted)
5) Spend your money where it returns the most comfort per pound
If you’ve got a limited budget (most households do), prioritise in this order:
- Stop heat escaping: loft insulation top-up, draught-proofing, basic pipe insulation
- Control the heat: thermostat, programmer, TRVs, zoning where practical
- Make heat efficiently: correct boiler setup, clean system water, right temperatures
Big-ticket items like a new boiler or a heat pump can be excellent solutions, but they’re not the first step for every home. Often, improving the “rest of the system” first means any future upgrade performs better—and costs less to run from day one.
One last thing: don’t let the July cap change push you into panic decisions
When headlines talk about “bills rising”, it’s easy to rush into a tariff switch or an expensive upgrade without checking whether it fits your home. The smarter approach is to combine tariff awareness with efficiency actions you control. Even modest improvements to setup and controls can soften the impact of a 13% cap rise, especially heading into the latter part of the year.
If you’re in Bordon, Whitehill, Liphook, Alton, Farnham or Haslemere and you want a practical look at how to reduce heating waste in your specific property—without guesswork—book a visit with Embassy Gas: https://www.embassygas.com/book or call (01420) 558993 or email helpdesk@embassygas.com.