Energy regulator Ofgem has confirmed this morning that household energy bills will fall from July when it updates its latest price cap. The cap for April to June was up 6% to £1,849, but now the new limit, between July and September, is lower. The new limit on energy unit price plus standing charge is £1,720. This is thought to have been influenced by US President Donald Trump’s aggressive tariff plans leading to a significant slump in gas and oil prices.
But the predicted new cap is slightly less than the previously forecast 9% after an easing of trade tensions in recent weeks. On Monday, Craig Lowrey, principal consultant at Cornwall Insight, said: “The fall in the price cap is a welcome development and will bring much-needed breathing space for households after a prolonged period of high energy costs. It’s a step in the right direction, but it should be taken in context. Prices are falling, but not by enough for the numerous households struggling under the weight of a cost-of-living crisis, and bills remain well above the levels seen at the start of the decade. As such, there remains a risk that energy will remain unaffordable for many.”
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