Overview

• Cornwall Insight forecasts a 9% reduction in Ofgem's energy price cap from £1,849 to £1,683 starting in July, resulting in an average annual household saving of £166.
• The fall in wholesale gas prices is attributed to US trade tariffs under President Trump, which have reduced global energy demand by raising fears of economic slowdown.
• Above-average temperatures have also contributed to lower energy demand, further driving down wholesale prices.
• Ofgem is set to confirm the new price cap level for July through September on May 27, with slight additional reductions predicted for October and January 2026.
• Experts caution that the energy market remains volatile, and households could achieve greater savings by switching to fixed-rate deals, which may beat the predicted price cap rate.