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UK household energy bills to fall after Ofgem lowers price cap 7pc

  • Ofgem lowered the UK energy price cap from £1,849 to £1,720, reducing household bills by £129 from July 2025.
  • This decrease is driven by falling wholesale prices for gas and electricity, despite continued upward pressure from inflation and the costs associated with decarbonisation.
  • Many UK households still pay about 27% more than European neighbours, with average bills 10% higher than last year and 65% above winter 2020/21 levels.
  • Energy expert Ashton Berkhauer noted the cap is still 50% higher than in 2019, while fixed tariffs remain £250–£300 below the cap and offer further savings.
  • Advocates urge urgent reform and funding of the Warm Homes Plan to prevent ongoing high bills and fuel poverty despite the short-term relief from the price cap cut.
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credit-connect.co.uk broke the news in on Thursday, May 22, 2025.
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