Energy regulator Ofgem is expected to confirm this morning that household energy bills will fall from July when it updates its latest price cap. The announcement is expected at 7am. The cap for April to June was up 6% to £1,849. It is thought that the new limit, between July and September, is expected to be a reduction. Experts at Cornwall Insight suggest that the drop could be 7% to £1,720. This is thought to have been influenced by US President Donald Trump’s aggressive tariff plans leading to a significant slump in gas and oil prices.
But the predicted new cap is slightly less than the previously forecast 9% after an easing of trade tensions in recent weeks. On Monday, Craig Lowrey, principal consultant at Cornwall Insight, said: “The fall in the price cap is a welcome development and will bring much-needed breathing space for households after a prolonged period of high energy costs. It’s a step in the right direction, but it should be taken in context. Prices are falling, but not by enough for the numerous households struggling under the weight of a cost-of-living crisis, and bills remain well above the levels seen at the start of the decade. As such, there remains a risk that energy will remain unaffordable for many.”
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