LONDON, May 26, 2026, 10:25 BST
Centrica slipped in London trading on Tuesday, trailing the FTSE 100, with investors eyeing a coming UK household energy price announcement and a new British Gas tariff. Shares were off around 0.4% at 199.55 pence by 10:20 BST after starting the session at 200.70 pence. The FTSE 100 was up roughly 0.6% according to delayed market data.
Ofgem is set to announce the household price cap for July through September by May 27. The cap now stands at 1,641 pounds for a typical dual-fuel direct debit customer, but it doesn’t cap the total bill. Instead, it limits what suppliers can charge per unit of gas and electricity and sets the daily standing charge, which covers the cost to stay connected.
Markets are looking to see if higher wholesale energy prices end up lifting bills, raising bad debts and increasing the political heat on suppliers. Cornwall Insight said in a forecast this month that the cap could jump 13% to 1,850 pounds in July. According to Reuters, the price move is mostly tied to wholesale energy costs linked to Gulf tensions.
British Gas, Centrica’s retail unit, acted ahead of the decision with a new two-year “Fix & Fall” tariff on Tuesday. The plan fixes prices for two years, but bills drop after 12 months if the Ofgem cap moves lower. “Their prices won’t go up for the next two years,” said Gary Booker, managing director of British Gas, adding the tariff aims to give customers “real peace of mind.” Centrica Plc
Centrica lagged UK utility stocks in early trade. National Grid edged up 1.1%, and SSE was up 0.6%. Centrica’s move was more muted compared to both those names.
Oil and gas traders faced a messier picture. Brent crude picked up around 3% as U.S. strikes in Iran put doubts on a peace deal, Reuters said. “Still waiting for more details on a potential deal,” UBS analyst Giovanni Staunovo said. Middle East tensions kept attention on energy flows. Reuters
Broader European risk markets took a hit as well. “It went from agreement is near to everyone needs to sign the Abraham Accords to bombing, so it’s not entirely clear what’s going on there,” Peter Schaffrik at RBC Capital Markets told Reuters. Reuters
Centrica shares traded at 199.30p just after 10:10 BST, according to LSEG figures cited by Investors’ Chronicle, sitting about 9.5% below the 52-week high of 220.30p hit April 7. The shares closed at 200.30p previously.
Regulatory issues remain. British Gas said earlier this month it will pay 20 million pounds to Ofgem’s voluntary redress fund after a probe into prepayment meter installations. Centrica said its 2026 outlook is unchanged. “What happened should never have happened,” Chief Executive Chris O’Shea said in a statement. Halifax Investments
The risk can go both ways. Should tensions drop and energy flows recover quicker than markets expect, wholesale prices might slip, taking some of the shine off defensive plays on suppliers. But if disruption keeps up, customer bills could climb again, stoking affordability worries and keeping British Gas under the political microscope. Trading might hold up, but analysts told Reuters any hit to energy infrastructure could mean a slower path back to normal flows.
Cautious trading on Tuesday kept volatility low. Markets are waiting for Ofgem’s cap update on Wednesday. Centrica’s signals on retail margins, customer debt, and energy trading will show if these can offset pressure from another tough period for UK household bills.
Related articles: Energy Sector
