Broadband routers could be costing UK households around £22.87 a year from the start of July, our calculations suggest. This week Ofgem announced a 13% increase of the energy price cap for the period covering Monday, July 1 to September 30, 2026. The price cap refers to the default tariff applied when a customer has not signed for a fixed-rate tariff. It sets a maximum rate per unit and standing charge that can be billed to customers for their energy use.
From July 1, people in England, Wales, and Scotland on a standard variable tariff, and who pay for their electricity via Direct Debit, will pay 26.11p per kilowatt hour (kWh) on average. It’s a marked increase on the current price cap of 24.67p per kWh, with Ofgem saying the rise is a “result of higher wholesale gas prices, caused by the ongoing conflict in the Middle East”. However, it noted that prices “remain well below the height of the energy crisis in 2022 when the government stepped in to cap bills at £2,500”.
It means your electricity bills will soon be more expensive, and you could be racking up significant sums if you use certain appliances a lot, or have ones that are on almost constantly.
Broadband routers have become an indispensable appliance for most Britons, powering their ability to work from home and stream their favourite shows.
Providers charge monthly fees for your broadband service, but it’s not the only cost households need to take into account, as the routers you need to access it are using electricity all the time.
Unlike your washing machine or oven, these devices remain in operation throughout the day to transmit the WiFi signals you need to stay online without interruption.
Providers often recommend not turning them off overnight so that they continue to receive important firmware updates.
Various smart devices in your home may also rely on it being on to function effectively, according to internet service provider Zen on its website.
There are some instances where it’s recommended that you power it down, such as if you’re going on holiday, or need to reboot it, but generally they’re on 24 hours a day.
Using Smart Money Tools’ Electricity Cost Calculator, we worked out just how much you’re paying over the course of a year under the current cap, and how much it will be from July 1 when the new price cap comes into effect.
Assuming you live in a household where there is someone at home at any one time throughout the year, and you’re using a device with the standard power rating of 0.01 kW 24 hours per day, it works out to less than a penny per 10 mins, 6p per day, and £1.80 per month currently. That’s the equivalent of £21.61 over the course of 12 months.
However, from July 1, the cost for that usage would be approximately 6p per day, and £1.91 per month, which would work out to £22.87 over the course of 12 months. That doesn’t include charges for the service which differ between providers.
Additionally, while the estimates give you an illustrative sense of the costs the cap represents over a longer period, the maximum limit on unit rates and standard charges is reviewed by the regulator every three months and doesn’t remain in place for a full year.
You will also have to take into account the daily standing charge for using electricity, which will drop slightly to 57.19 pence per day from July 1, though this covers all the electrity you’re using.
One way to protect yourself from price cap hikes is to get on a fixed rate that can protect you from global shocks over a set period.
The regulator says currently, 40% (22million) of accounts are fixed tariffs and are therefore unaffected by the July 1 price rise.