Cornwall Insight analysts have revised the energy price cap for July‑September, projecting a 13% rise instead of the double‑digit surge initially feared. Regulators say the cap will sit above last year’s average but below earlier forecasts that alarmed consumers and utilities. The change follows a review of wholesale trends after Russia’s supply constraints eased, letting officials temper prior scenarios.

Energy suppliers braced for a sharp cost increase, prompting calls for government intervention to shield vulnerable households. By tempering the cap, the regulator seeks to balance affordability with funding the shift to greener generation, a challenge that has strained profit margins after recent wholesale price volatility. Quarterly earnings from the big six suppliers show margin compression, underscoring the need for a moderated cap.

Investors will watch how the moderated cap influences billing cycles and demand for hedging contracts, as utilities recalibrate exposure to price swings. The modest lift also eases pressure on the Office for Gas and Electricity Markets, which faces scrutiny over its methodology. Overall, the adjustment delivers a narrower gap between consumer bills and market realities, easing stakeholder tension.