Mon, 19 May 2025

Mon, 19 May 2025 Energy price cap: What next for gas and electricity bills and can I fix?

Gas and electricity prices are expected to fall in July, under regulator Ofgem's new price cap.

* Gas and electricity bills are expected to fall in July, reversing a £111 increase that took effect on April 1.
* The new price cap is likely to bring down the annual bill for a typical dual-fuel household using direct debit from £1,849 to £1,720.
* The energy price cap covers around 22 million households in England, Wales and Scotland and is set every three months by Ofgem.
* Households that pay their bills by cash or cheque will see a higher bill than those paying by direct debit.
* Smart meter users do not need to submit meter readings as their bills are calculated automatically.
* Fixed-price deals are not affected by the energy price cap, but can leave customers stuck at a higher price if prices drop.
* Ofgem is introducing new rules for prepayment meters and suppliers must give customers more opportunity to clear debts before switching them to a meter.
* Standing charges vary slightly by region and make up a bigger proportion of the bill for low energy users.
* Campaigners argue that standing charges are unfair and have criticized proposals to introduce a choice of price-capped tariffs with or without standing charges.
* The Household Support Fund has been extended until March 2026, providing financial assistance to vulnerable customers.
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