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4d ago

Energy Price Cap Forecasted to Drop 7% in July, Saving Households £129

Ofgem is set to announce the revised cap on Friday, with further modest reductions expected later in the year.

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Cornwall Insight had predicted a drop of 9 per cent this year and warned that energy prices still remained much higher than historical norms
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Overview

  • The energy price cap is predicted to fall to £1,720 annually for a typical dual-fuel household, down from the current £1,849.
  • Analysts at Cornwall Insight attribute the projected decrease to global market shifts, including lower gas and oil prices influenced by U.S. trade policies.
  • Ofgem’s formal announcement on the price cap is scheduled for Friday, with the new rates taking effect in July.
  • Further modest reductions in the price cap are expected in October 2025 and January 2026, although market volatility remains a concern.
  • Households on standard variable tariffs are advised to consider fixed-rate deals, which could save them up to £332 annually compared to the current cap.