Ofgem confirms a 13% price cap rise for July
On 27 May Ofgem announced that the household price cap would rise 13% from 1 July, with gas up around 24% and electricity around 5%. Wholesale gas prices had risen 28% in three months amid conflict in the Middle East. Ofgem also updated its benchmark for typical household use, so the typical annual bill moves from £1,641 to £1,663.
For businesses, which have no price cap, the message is the same: wholesale costs are rising and contract renewals this year will reflect that.
A new May temperature record
Kew Gardens reached 35.1°C on 26 May, the highest May temperature ever recorded in the UK. Early heat brings cooling demand forward, adding cost for buildings with air conditioning or refrigeration.
El Niño now likely
The US Climate Prediction Center’s 14 May update put the chance of El Niño forming by July at 82%, and of it lasting into winter at 96%.
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