Ofgem Cuts Energy Price Cap for July

Ofgem has announced a 7% reduction in the energy price cap from July, lowering the typical annual bill for a dual-fuel household paying by direct debit from £1,849 to £1,720, saving £129. This adjustment is the first decrease in a year and reflects a decline in wholesale gas prices. The cap, reviewed quarterly, limits the maximum unit rates suppliers can charge, so individual savings may vary based on energy usage. Experts, including Martin Lewis, recommend consumers explore fixed deals and consider different payment methods for potential additional savings. Despite the reduction, energy bills are still much higher than before the Ukraine war, and many households continue to face significant affordability challenges. Calls for targeted government support, such as a social tariff for vulnerable groups, persist amid ongoing uncertainty in global energy markets.