{"id":40006,"date":"2025-05-23T11:35:18","date_gmt":"2025-05-23T11:35:18","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/23\/energy-price-cap-to-cut-bills-by-7-from-july-but-households-still-under-strain\/"},"modified":"2025-05-23T11:35:18","modified_gmt":"2025-05-23T11:35:18","slug":"energy-price-cap-to-cut-bills-by-7-from-july-but-households-still-under-strain","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/23\/energy-price-cap-to-cut-bills-by-7-from-july-but-households-still-under-strain\/","title":{"rendered":"Energy price cap to cut bills by 7% from July, but households still under strain"},"content":{"rendered":"
<\/div>\n

Energy bills across the United Kingdom will drop by 7% from July 1, following a decline in wholesale gas prices, according to new figures from the energy regulator Ofgem. <\/p>\n

The cut to the price cap, announced on Friday, will lower annual bills for a typical household paying by direct debit to \u00a31,720 \u2014 a modest but welcome reduction amid the broader cost-of-living squeeze that continues to grip the country.<\/p>\n

The move marks the end of a series of quarterly price increases, but energy bills are still expected to remain elevated by historical standards. <\/p>\n

While consultancy Cornwall Insight does not anticipate a dramatic hike in the coming winter, it has forecast only a minimal rise in the next price cap review, suggesting little relief ahead for households already struggling.<\/p>\n

Bills remain well above pre-crisis levels<\/h2>\n

Despite the latest cut, energy bills remain significantly higher than in previous years. <\/p>\n

In 2019, the first year Ofgem introduced the price cap, the average annual bill stood at \u00a31,137. <\/p>\n

Today\u2019s adjusted figure of \u00a31,720 represents a 51% increase over six years.<\/p>\n

Ashton Berkhauer, energy expert at MoneySuperMarket, said the figures highlight how entrenched the rise in energy costs has become. <\/p>\n

\u201cEven after this drop, we\u2019re a long way from what was once considered normal,\u201d he noted.<\/p>\n

Many households are still grappling with the effects of the energy crisis that began several years ago, compounded by the COVID-19 pandemic and the war in Ukraine, both of which caused steep spikes in gas and electricity prices. <\/p>\n

Despite Prime Minister Keir Starmer\u2019s election pledge to tackle soaring energy costs, bills today remain roughly 10% higher than when Labour took office.<\/p>\n

<\/figure>\n

Source:<\/a> The Guardian<\/em><\/p>\n

Ofgem urges households to shop around<\/h2>\n

Ofgem acknowledged that while the 7% drop in the cap is a positive step, prices remain high by historical standards. <\/p>\n

Tim Jarvis, Director General of Markets at Ofgem, advised consumers to consider alternative tariffs or speak with their current providers to secure better deals.<\/p>\n

\u201cYou don\u2019t have to pay the price cap,\u201d he said. \u201cThere are better deals out there. Changing your payment method to direct debit or smart pay-as-you-go could save up to \u00a3136 a year.\u201d<\/p>\n

Jarvis added that longer-term reforms are needed to stabilise prices and achieve energy security. <\/p>\n

\u201cWe\u2019re working closely with the government to get the investment we need to reach our clean power and net zero targets as quickly as possible,\u201d he said.<\/p>\n

Pressure builds on government amid volatile energy market<\/h2>\n

The government has come under renewed pressure to provide more targeted support for low-income and vulnerable households, with experts warning that wholesale prices remain highly sensitive to geopolitical and economic shifts. <\/p>\n

Though British gas prices have fallen nearly 30% since the start of the year, they have edged upward again in recent weeks, highlighting the market\u2019s inherent volatility.<\/p>\n

Cornwall Insight attributed the most recent drop in prices to several short-term factors, including warmer-than-average temperatures and international developments such as the easing of European gas storage regulations and newly announced US trade tariffs.<\/p>\n

Dr Craig Lowrey, principal consultant at Cornwall Insight, cautioned that relief may be fleeting. <\/p>\n

\u201cThis fall in the price cap is undoubtedly welcome news for households, offering a degree of relief at a time when many are grappling with high living costs,\u201d he said. <\/p>\n

\n

But while it\u2019s important to celebrate the small wins, the energy market remains unpredictable. Global events can quickly reverse the current trend.<\/p>\n<\/blockquote>\n

Energy suppliers, too, have warned against assuming the worst is over. <\/p>\n

EDF Energy said that the market remains \u201cincredibly volatile\u201d and that further action is needed to support the most at-risk customers. <\/p>\n

The company urged the government and regulator to implement long-term solutions to insulate the UK energy system from international price shocks.<\/p>\n

Other utilities add to household cost burden<\/h2>\n

While energy prices are set to fall in July, water bills have surged sharply. <\/p>\n

From April, average water bills in the UK increased by 26% \u2014 the steepest annual rise on record. <\/p>\n

The rise has been attributed to investment in critical infrastructure and efforts to tackle the growing public backlash over water leaks and sewage pollution.<\/p>\n

These parallel increases have left households facing a broader utility squeeze, even as headline inflation begins to stabilise.<\/p>\n<\/p>\n

The post Energy price cap to cut bills by 7% from July, but households still under strain<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Energy bills across the United Kingdom will drop by 7% from July 1, following a decline in wholesale gas prices, according to new figures from the energy regulator Ofgem. The cut to the price cap, announced on Friday, will lower annual bills for a typical household paying by direct debit to \u00a31,720 \u2014 a modest <\/p>\n","protected":false},"author":1,"featured_media":40007,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-40006","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/40006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=40006"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/40006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/40007"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=40006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=40006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=40006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}