Ofgem confirms energy price cap cut from July
Typical household energy bills to fall after latest price cap is revealed
Many households across the UK will see a drop in energy bills this summer, as Ofgem confirms its latest price cap will fall by around 7% from 1st July.
The new cap, which limits how much suppliers can charge per unit of electricity and gas, means the typical annual household bill will fall by approximately £129 — from £1,849 to £1,720 per year.
The reduction comes after recent drops in wholesale gas and oil prices, largely triggered by significant shifts in global markets following US tariff plans.
The last price cap increase, which came into effect in April raised bills by 6.4%.
More modest drops to follow
Cornwall Insight forecasts further, smaller decreases to the price cap later in the year. Analysts expect a “modest drop” in October, with another similar dip likely in January 2026, suggesting a slow but steady easing in household energy costs.
For many households, the confirmation of a decrease in July’s price cap will offer a reprieve after what was dubbed an “awful April”, when a range of essential bills surged.
As well as higher energy costs, consumers have faced the steepest rise in water bills since records began in February 1988, coupled with increases in council tax, mobile and broadband tariffs, and road tax.
Ofgem’s new price cap will come into effect on 1st July and remain in place for three months, before the next quarterly update in October.