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Ofgem trims UK energy price cap by 7%, lowering average annual bills to £1,720

Falling global gas costs prompted Ofgem’s cap reduction alongside a review of standing charges aimed at tackling billing inequalities.

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Overview

  • The new cap will apply from July 1 to September 30, saving a typical household £11 per month compared to April–June levels.
  • Average annual dual-fuel bills will drop to £1,720 under direct debit plans, down £129 a year from the current cap.
  • Home electric vehicle charging costs will fall too, with a full 60 kWh charge dropping from £16.21 to £15.43.
  • Despite the cut, energy bills remain markedly above pre-crisis levels and still strain low-income households.
  • Ofgem is assessing how fixed standing charges contribute to inequality and experts call for targeted support and deeper policy reforms.