Thu, 22 May 2025

Thu, 22 May 2025 Energy price change set to cut bills by over £100 a year

Analysts believe a typical annual domestic energy bill could drop by more than £100 in July.
Ofgem, the UK energy regulator, is set to announce a decrease in domestic gas and electricity prices from July, which will benefit 22 million households in England, Scotland, and Wales. The price cap, which affects household energy bills every three months, is expected to drop for the first time in a year. Analysts forecast that the annual bill for a typical home using average amounts of gas and electricity will fall by over £100. This means a typical dual-fuel customer paying by direct debit will see their annual bill decrease from £1,849 to £1,720, or about 7% lower. The price cap change is estimated to save households around £129 per year. However, the drop in prices does not eliminate the burden of energy debt, with millions of customers collectively owing over £4 billion to suppliers. Charities say cheaper bills would be welcome but many people still struggle to pay their energy bills, and some are forced to make difficult choices between paying for food or energy.
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