Mon, 30 Jun 2025

Mon, 30 Jun 2025 Household energy bills fall but may not go much lower

Bills for homes using a typical amount of gas and electricity will drop by £11 a month.

* From Tuesday, energy prices will fall by £11 a month for 21 million households in England, Scotland and Wales due to Ofgem's latest price cap.
* The price cut is a 7% reduction, but experts warn that costs may rise again when it gets colder and darker.
* People are being encouraged to shop around for fixed deals, which could provide more certainty over payments and potentially save £200 per year.
* There is uncertainty about the future direction of prices due to factors such as global events in the Middle East.
* Analysts at Cornwall Insight have forecast a further 1% drop in October, but this is subject to significant uncertainty.
* The current price cap still leaves household bills hundreds of pounds above pre-pandemic levels when adjusted for inflation.
* Fixed deals only set the unit rate and do not take into account how much energy is used, so actual household bills can vary greatly.
* Tips for managing energy costs include: + Cooking meals that use cheaper ingredients + Using an air fryer instead of a conventional oven + Planning shops carefully to avoid food waste + Providing regular meter readings to suppliers
* The regulator is considering changes to the system of standing charges, but this has sparked debate over how they operate.
* Pensioners who receive means-tested benefits will automatically see the £150 Warm Home Discount knocked off their bills.
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