Overview

• Ofgem’s July 1 cap sets the typical dual-fuel bill at £1,720, down from £1,849, with electricity unit rates reduced from 27.03p to 25.73p and gas from 6.99p to 6.33p alongside lower standing charges.
• The new cap level is 28% below the peak of early 2023 but remains roughly 10% higher than this time last year, reflecting sustained wholesale cost pressures.
• Around 22 million households on standard variable tariffs must provide accurate meter readings or face higher estimated bills, with one in five homes without smart meters not submitting readings in the last three months.
• Approximately 35% of customers have already moved to fixed-rate deals, which currently undercut the new cap by about £145 for the average household.
• Ofgem reminds consumers they are not obliged to stay on default capped tariffs and urges shopping around to secure more competitive off-cap deals and greater bill predictability.