British households are set to be better off from July after the UK’s energy watchdog announced gas and electricity bills will fall.
Ofgem’s energy price cap will fall by 7 per cent from £1,690 to £1,568 from 1 July for a typical dual fuel household in England, Scotland and Wales, the regulator has announced.
The drop provides some relief from sky-high energy costs since 2022 that have crippled some households struggling with the cost of living.
But Ofgem’s chief executive, Jonathan Brearley, told MPs on the Energy Security and Net Zero Committee on Wednesday that prices were still significantly higher than before, adding the watchdog expected prices would stay high and volatile over time.
The energy price cap, which limits the cost of each unit of gas and electricity used as well as daily standing charges, changes four times a year – in January, April, July and October.
Citizens Advice chief executive Dame Clare Moriarty said: “Today’s news will give small comfort to households still facing cost-of-living pressures.
“The fall in the energy price cap reduces bills slightly, but our data tells us millions have fallen into the red or are unable to cover their essential costs every month. People cannot rely on lower energy prices alone to escape the financial issues they’ve been experiencing.”
Ofgem is currently reviewing the price cap and looking at how it is calculated. This includes mulling over changes to standing charges, which are fixed daily charges that cover the cost of supply connections.
Mike Thornton, chief executive of the Energy Saving Trust, added: “Today’s confirmation that energy prices are coming down for the next quarter is very welcome.
“However, no-one should take this lower price cap as a sign of stability. Forecasts show that energy prices are set to rise again this autumn and will be staying high overall for the next decade.
“After the election the incoming UK government must prioritise policies that support people to use less energy and install cost-effective energy efficiency improvements in their homes.”
Ofgem is currently reviewing the price cap and looking at how it is calculated. This includes mulling over changes to standing charges, which are fixed daily charges that cover the cost of supply connections.
