{"id":942,"date":"2025-05-23T06:36:04","date_gmt":"2025-05-23T06:36:04","guid":{"rendered":"https:\/\/alaskanativeowned.com\/?p=942"},"modified":"2025-05-28T20:28:51","modified_gmt":"2025-05-28T20:28:51","slug":"ofgem-energy-price-cap-falls-by-7-heres-how-much-your-bills-will-now-be","status":"publish","type":"post","link":"https:\/\/alaskanativeowned.com\/index.php\/2025\/05\/23\/ofgem-energy-price-cap-falls-by-7-heres-how-much-your-bills-will-now-be\/","title":{"rendered":"Ofgem energy price cap falls by 7% \u2013 here\u2019s how much your bills will now be"},"content":{"rendered":"<figure class=\"img-container shareable-item wp-caption\">\n<div class=\"img-wrap\">\n\t\t<img width=\"646\" height=\"389\" src=\"https:\/\/alaskanativeowned.com\/wp-content\/uploads\/2025\/05\/SEI_252729754-4bd0.jpg\" class=\"article-image wp-image-23227737\" alt=\"Ofgem energy price cap falls by 7% - here&#039;s how much your bills will now be\" loading=\"lazy\" \/>\t<\/div><figcaption>Energy prices will fall in July, Ofgem has announced (Picture: Justin Tallis)<\/figcaption><\/figure>\n<div class=\"metro-article-audio-player\" data-vars-type=\"article-audio-player\">\n<div class=\"metro-article-audio-player-play-row\">\n\t\t\t\t<button class=\"metro-article-audio-player-play-button\"><br \/>\n\t\t\t\t\t<title>Listen to article<\/title>\t\t\t\t\t<span>Listen to article<\/span><br \/>\n\t\t\t\t<\/button><\/p>\n<div class=\"img-container\"><img class=\"sponsor-image\" src=\"https:\/\/metro.co.uk\/wp-content\/themes\/metro\/includes\/site-blocks\/article-audio\/assets\/powered-by.png\" alt=\"Powered by\" data-rewritten=\"false\" \/><\/div>\n<\/p><\/div>\n<div class=\"audio-controls hidden\">\n\t\t\t\t<audio class=\"audio-element\" src=\"https:\/\/metro.co.uk\/wp-content\/uploads\/2025\/05\/ElevenLabs_2025-05-23T12_17_23_Axell-British-YouTube-Personality-_pvc_sp100_s50_sb75_se30_b_m2-8a65.mp3\" controls id=\"audio-683771f446b27\">\t\t\t<\/p>\n<p>\t\t\t\t\tYour browser does not support the audio element.<br \/>\n\t\t\t\t<\/audio>\n\t\t\t<\/div>\n<\/p><\/div>\n<p>Energy bills will drop by around 7% in July, <strong>energy regulator Ofgem has announced.<\/strong><\/p>\n<p>A household using a typical amount of gas and electricity should see their bills fall by \u00a3129 a year.<\/p>\n<p>It comes as government regulator Ofgem reduce their price cap &#8211; the amount a supplier can charge for each unit of energy &#8211; for the first time in a year.<\/p>\n<p>The typical amount someone will pay per year is \u00a3660 (28%) lower than at the height of the&nbsp;energy&nbsp;crisis at the start of 2023.<\/p>\n<p>However it is still 9% higher than the price cap set for the same three month period last year. <\/p>\n<p>Ofgem said the cap, which is reviewed every three months has fallen because global wholesale prices for energy have gone down. <\/p>\n<p>Changes to supplier business costs have also made an impact, it added.<\/p>\n<p>The price cap, which is reviewed every three months, does not apply to Northern Ireland.<\/p>\n<figure class=\"img-container shareable-item wp-caption\">\n<div class=\"img-wrap\">\n\t\t<img width=\"646\" height=\"430\" src=\"https:\/\/alaskanativeowned.com\/wp-content\/uploads\/2025\/05\/SEI_252729608-4ce4.jpg\" class=\"article-image wp-image-23227717\" alt=\"Close up of a smart energy meter.Related Images:\" loading=\"lazy\" \/>\t<\/div><figcaption>Energy bills will still be 9% higher than during the same period next year (Picture: Getty Images)<\/figcaption><\/figure>\n<p>Tim Jarvis, director general of markets at Ofgem, said: &#8216;A fall in the price cap will be welcome news for consumers, and reflects a reduction in the international price of wholesale gas. <\/p>\n<p>&#8216;However, we&#8217;re acutely aware that&nbsp;prices&nbsp;remain high, and some continue to struggle with the cost of&nbsp;energy.<\/p>\n<p>&#8216;The first thing I want to remind people is that you don&#8217;t have to pay the price cap &#8211; there are better deals out there so it&#8217;s important to shop around, and talk to your existing supplier about the best deal they can offer you. <\/p>\n<p>&#8216;And changing your payment method to direct debit or smart pay as you go can save you up to \u00a3136.&#8217;<\/p>\n<p>He added that in the longer term, the UK needs an energy system where prices are insulated from the volatile international gas market, ensuring more stable prices and energy security.<\/p>\n<p>&#8216;And we&#8217;re working closely with government to get the investment we need to reach our clean power and net zero targets as quickly as possible,&#8217; he said.<\/p>\n<div class=\"factbox\" data-ico=\"factbox_article\" data-track-module=\"factbox_article\">\n<h2 class=\"factbox-title\">\n\t\t\t\tWhat is the energy price cap?\t\t\t<\/h2>\n<div class=\"factbox-content\">\n<p>The energy price cap is a regulatory limit on the maximum amount energy suppliers can charge customers for their energy usage.<\/p>\n<p>It was introduced by Ofgem in January 2019 to protect consumers, particularly those on standard variable tariffs, from excessively high energy prices. <\/p>\n<p>The cap, which is reviewed every three months, limits the amount that suppliers can charge for each unit of gas and electricity, as well as the daily standing charge that customers pay to have their homes connected to the energy grid.<\/p>\n<p>It applies to the majority of households in England, Scotland, and Wales that are on standard variable or default tariffs.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p>&#8216;We&#8217;re also doing everything we can to support consumers today and pushing ahead with more changes to help consumers. This includes working on ways to support those trapped in&nbsp;energy&nbsp;debt and bringing in reforms to standing charge tariffs for this winter.&#8217;<\/p>\n<p>Citizens Advice chief executive Clare Moriarty said the drop would ease the burden of high bills for some households but urged the government not to lose perspective.<\/p>\n<p>She added: &#8216;Bills will still be 52% higher than before the&nbsp;energy&nbsp;crisis and nearly seven million people live in households that have fallen behind on bills.<\/p>\n<p>&#8216;Today&#8217;s announcement will be cold comfort to the millions paying off a mountain of debt on top of their monthly costs.<\/p>\n<p>&#8216;The government has said it hopes to provide more support to pensioners this winter but we know that people with children are often struggling most of all with&nbsp;energy. <\/p>\n<div class=\"flourish-embed flourish-chart\" data-src=\"visualisation\/23370085\" data-secret=\"O6nS77fLbV\"><\/div>\n<p>&#8216;It must provide more targeted&nbsp;energy&nbsp;bill support to those hardest hit, and upgrade five million homes with money-saving&nbsp;energy&nbsp;efficiency measures.&#8217;<\/p>\n<p>Meanwhile, Simon Francis, coordinator of the End Fuel Poverty Coalition said: &#8216;The government&#8217;s reverse ferret on Winter Fuel Payments are a clear sign that ministers know that people are struggling with&nbsp;energy&nbsp;bills &#8211; but sticking-plaster solutions and U-turns won&#8217;t help people in the long-term.<\/p>\n<p>&#8220;While bills may fall slightly in July, they&#8217;re still significantly higher than before the&nbsp;energy&nbsp;crisis and remain tied to the unpredictable cost of fossil fuels. Without urgent reform and real investment, millions will continue to face unaffordable bills and cold homes.&#8221;<\/p>\n<p>Here&#8217;s how much you will pay in England, Scotland and Wales, according to Ofgem.<\/p>\n<h3 class=\"wp-block-heading\">Electricity rates<\/h3>\n<p>If you are on a standard variable tariff (default tariff) and pay for your electricity by direct Debit, you will pay on average 25.73p per kilowatt hour (kWh). The daily standing charge will be 51.37p per day. This is based on the average across England, Scotland and Wales and includes VAT.\u202f<\/p>\n<h3 class=\"wp-block-heading\">Gas rates<\/h3>\n<p>If you are on a standard variable tariff (default tariff) and pay for your gas by Direct Debit, you will pay on average 6.33 pence per kilowatt hour (kWh). The daily standing charge is 29.82\u202fpence per day. This is based on the average across England, Scotland and Wales and includes VAT.\u202f<\/p>\n<p>Earlier this month it was revealed ten energy suppliers would be <a href=\"https:\/\/metro.co.uk\/2025\/05\/10\/energy-suppliers-refund-households-7-000-000-overcharging-customers-23060596\/\" data-type=\"link\" data-id=\"https:\/\/metro.co.uk\/2025\/05\/10\/energy-suppliers-refund-households-7-000-000-overcharging-customers-23060596\/\">paying customers \u00a37 million in refunds<\/a> after overcharging them for five years.<\/p>\n<p>More than 34,000 customers across the UK with at least two electricity meters in the property overpaid&nbsp;their bills&nbsp;between 2019 and 2024.<\/p>\n<p><strong>Got a story? Get in touch with our news team by emailing us at <a href=\"mailto:webnews@metro.co.uk\">webnews@metro.co.uk<\/a>.<\/strong> <strong>Or you can submit your videos and pictures <a href=\"https:\/\/metro.co.uk\/submit-stuff\/\" data-type=\"URL\" data-id=\"https:\/\/metro.co.uk\/submit-stuff\/\">here<\/a>.<\/strong><\/p>\n<p><strong>For more stories like this, check our<\/strong><a href=\"https:\/\/metro.co.uk\/news\/\"><strong>&nbsp;news page<\/strong><\/a><strong>.<\/strong><\/p>\n<p><strong>Follow Metro.co.uk on <a href=\"https:\/\/twitter.com\/MetroUK\" data-type=\"URL\" data-id=\"https:\/\/twitter.com\/MetroUK\">Twitter<\/a> and <a href=\"https:\/\/www.facebook.com\/MetroUK\" data-type=\"URL\" data-id=\"https:\/\/www.facebook.com\/MetroUK\">Facebook<\/a> for the latest news updates.<\/strong> <strong>You can now also get Metro.co.uk articles sent straight to your device. Sign up for our daily push alerts <a href=\"https:\/\/metro.co.uk\/how-to-subscribe-to-metro-news-notifications\/\" data-type=\"URL\" data-id=\"https:\/\/metro.co.uk\/how-to-subscribe-to-metro-news-notifications\/\">here<\/a>. <\/strong> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Energy prices will fall in July, Ofgem has announced (Picture: Justin Tallis) Listen to article Listen to article Your browser does not support the audio element. Energy bills will drop by around 7% in July, energy regulator Ofgem has announced. A household using a typical amount of gas and electricity should see their bills fall [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":944,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"https:\/\/alaskanativeowned.com\/index.php\/wp-json\/wp\/v2\/posts\/942"}],"collection":[{"href":"https:\/\/alaskanativeowned.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alaskanativeowned.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alaskanativeowned.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/alaskanativeowned.com\/index.php\/wp-json\/wp\/v2\/comments?post=942"}],"version-history":[{"count":3,"href":"https:\/\/alaskanativeowned.com\/index.php\/wp-json\/wp\/v2\/posts\/942\/revisions"}],"predecessor-version":[{"id":947,"href":"https:\/\/alaskanativeowned.com\/index.php\/wp-json\/wp\/v2\/posts\/942\/revisions\/947"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alaskanativeowned.com\/index.php\/wp-json\/wp\/v2\/media\/944"}],"wp:attachment":[{"href":"https:\/\/alaskanativeowned.com\/index.php\/wp-json\/wp\/v2\/media?parent=942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alaskanativeowned.com\/index.php\/wp-json\/wp\/v2\/categories?post=942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alaskanativeowned.com\/index.php\/wp-json\/wp\/v2\/tags?post=942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}