Millions of UK households are set to see their energy bills decrease as leading suppliers Octopus Energy, British Gas, and EDF announce price cuts following a reduction in the energy price cap.
What’s Changing?
The energy regulator Ofgem has lowered the price cap by 7%, meaning average annual bills will drop by around £122 from July. This adjustment reflects a recent decline in wholesale energy costs.
Supplier-Specific Reductions
Octopus Energy has confirmed it will pass on the full reduction to customers on its standard variable tariff. Similarly, British Gas and EDF have pledged to lower their prices in line with the new cap.
How Much Will You Save?
The exact savings will depend on your current tariff and usage, but here’s a rough estimate:
- Average dual-fuel household: £1,568 per year (down from £1,690)
- Electricity-only households: Around £60 reduction
- Gas-only households: Approximately £62 reduction
What This Means for You
If you’re on a standard variable tariff, your bills should automatically adjust. However, fixed-rate customers won’t see immediate changes unless their contract is due for renewal.
Experts suggest now could be a good time to compare tariffs, as some suppliers may offer competitive fixed deals below the new price cap.
Future Outlook
While this reduction brings welcome relief, analysts warn that prices remain significantly higher than pre-crisis levels. Households are encouraged to continue energy-saving practices to manage costs effectively.
