UK Ofgem Cuts Energy Price Cap 7% From July

Ofgem has announced a 7% reduction in the UK energy price cap, effective from July 1 through September 30, marking the first decrease in a year. This change will lower the typical household energy bill by about £129 annually, or roughly £11 per month, bringing the average annual cost for gas and electricity on a standard dual-fuel direct debit plan to £1,720. The reduction is primarily driven by a fall in wholesale gas prices, which accounts for around 90% of the decrease, although prices remain about 10% higher than the same period last year. Ofgem's Director General of Markets, Tim Jarvis, urged consumers to shop around for better deals and consider switching to payment methods like direct debit to save even more. Despite the relief, energy bills are still significantly higher—28% lower than the peak during the 2023 energy crisis but remain a financial strain for many households. Consumer confidence appears to be improving alongside the price drop, however, sectors like manufacturing continue to struggle with high energy and labor costs.