US EditionUK household energy bills to fall after Ofgem lowers price cap 7pc
- Ofgem will reduce the UK energy price cap to £1,720 from July 2025, lowering average household bills by £129 annually across England, Scotland, and Wales.
- This reduction comes after a drop in wholesale gas and electricity costs, although average bills still remain approximately 10% higher than last year and are 65% above the levels seen in winter 2020/21.
- More consumers are switching to fixed tariffs like E.ON Next’s 12-month deal at £1,573, which typically saves around £250 to £300 compared to the price cap for standard customers.
- Matt Turner-Tait from BFY Group explained that although the difference between fixed-rate plans and the Price Cap is likely to decrease as the cap drops, consumers can generally expect to save money by choosing fixed tariffs in the short term.
- Experts warn that despite this short-term relief, rising supplier debt, volatile markets, and decarbonisation costs could offset savings without urgent reform and full funding of the Warm Homes Plan.
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Ofgem’s 7 Percent Energy Price Drop Isn’t a Win for Consumers: Experts
A 7 percent reduction in energy prices announced by Ofgem simply restores prices to where they were at the beginning of the year, leaving energy bills higher than they were 12 months ago, experts have warned. From July to Sept. 30, the typical household paying by Direct Debit will save £11 a month, the regulator said on Friday. Prime Minister Sir Keir Starmer described the announcement on social media platform X as “welcome news, saving money fo…
·New York, United States
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Leaning Left9Leaning Right5Center22Last UpdatedBias Distribution61% Center
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