Ofgem tells UK households how to lower energy bills | Personal Finance | Finance

Households are being urged to take simple steps to cut their energy costs as fears grow that bills will surge again from July – with the Middle East conflict set to pile further pressure on family finances this winter.

The regulator Ofgem has issued fresh guidance for Brits on slashing electricity use, warning that even small changes – particularly around lighting – can make a very noticeable difference. In a social media post, the watchdog highlighted three key tips to reduce lighting bills:

• Swap old incandescent bulbs for LEDs or other efficient alternatives
• Turn lights off when rooms are empty
• Install motion sensors so lights are only used when needed

The advice comes at a critical moment for millions of households, with energy costs widely expected to rise again in just weeks.

Bills set to jump from July

While current prices are capped until the end of June, experts warn the next price cap – due to take effect from July – will reflect a sharp rise in wholesale gas prices triggered by the Middle East conflict.

Industry forecasts suggest bills could climb by around 9% to 12%, adding roughly £160 to £196 a year for a typical household.

The reason for the delay is the way the cap works: it is based on past wholesale prices, meaning the impact of recent global turmoil has yet to fully feed through.

Analysts say the situation could worsen further into the autumn and winter if tensions persist, with additional increases expected in October and early 2027.

Middle East war driving price pressure

The conflict has sent shockwaves through global energy markets, pushing up the cost of gas – which still heavily influences UK electricity prices.

According to Ofgem, international events can quickly affect wholesale costs, and “sustained disruption” could put upward pressure on bills in future price cap periods.

Parliamentary researchers say the war has already led to higher wholesale prices, which are likely to feed into household bills later this year.

Although UK supplies remain secure, the global nature of the market means families are not insulated from geopolitical shocks.

Pain not over despite earlier drop

Bills fell by 7% in April to around £1,641 a year for a typical household – offering temporary relief after years of high costs.

But even after that drop, energy costs remain around 35% higher than before the 2021/22 crisis and are now expected to climb again.

That means households face a renewed squeeze just as colder weather approaches later in the year.

More ways to cut your energy costs

Alongside its lighting advice, Ofgem and consumer experts say households can take wider steps to keep bills down, including:

• Using appliances efficiently and avoiding standby mode
• Switching to energy-saving devices and smart controls
• Checking whether a fixed tariff could offer protection from future rises
• Seeking support schemes or payment plans if struggling

The regulator says while the price cap limits unit costs, “the more energy you use, the higher your bill will be” so making efficiency crucial.