Regulators have confirmed that energy bills are set to fall by £129 from July, offering some respite to British households after a string of three consecutive rises.
Ofgem, the UK’s energy watchdog, will lower the energy price cap – the maximum amount suppliers can charge – to £1,720 per year, down from the current £1,849. The cap is reviewed quarterly and is intended to reflect shifts in wholesale energy prices.
This reduction follows months of pressure on consumers, with rising bills contributing to the broader inflation surge. Analysts at Cornwall Insight have also forecast a further “modest drop” in prices this October, with another likely in January.
The easing in household bills comes against the backdrop of falling global energy prices, influenced by market uncertainty linked to Donald Trump’s trade policies and increased oil production from Opec nations, which has pushed prices lower.
Dr Craig Lowrey of Cornwall Insight welcomed the move, saying: “This fall in the energy price cap is undoubtedly welcome news for households, offering a degree of relief at a time when many are grappling with high living costs and rising inflation.
“While lower prices during the warmer months are helpful, the real benefit may come in October. That’s when energy use typically increases, and a further drop could be a major help for families facing high costs ahead of the Christmas period.”
However, Lowrey cautioned that the market remains volatile: “Global events—from geopolitics to weather patterns—can quickly reverse the recent downward trend in wholesale prices. And even with the cap falling, bills remain above what used to be considered ‘normal’, so continued support is essential.”
Adam Scorer, chief executive of National Energy Action, echoed that concern, warning that despite the fall, energy bills remain “punishingly high.”
He added: “Four years of extraordinarily high energy bills has taken its toll. We hear heart-breaking cases every day.”
