Overview

• Ofgem has announced a 7% reduction in the energy price cap, lowering the typical annual bill to £1,720 starting July 1.
• The decrease is primarily attributed to falling wholesale gas and oil prices, influenced by U.S. tariff actions and easing trade tensions.
• About nine million households on variable tariffs will see immediate savings, though bills remain roughly £600 higher than pre-Ukraine invasion levels.
• Analysts project further modest reductions in the price cap in October and January, contingent on global market conditions.
• Consumers are encouraged to explore fixed-rate deals and alternative payment methods, which could offer additional savings of up to £136 annually.