Household energy bill drop brings short-lived respite ahead of possible July rise

Ofgem's price cap has fallen from £1,758 to £1,641, a reduction of about £117, while analysts warn household bills could rise by around 18% from July.

Ofgem's energy price cap has been reduced to £1,641 from £1,758, a drop of £117 that takes effect from Wednesday. This represents a 7% cut and is reported as an 11% fall year on year, though bills are still higher than in the winter of 2020–21. Analysts and consumer groups say the reduction is likely to be temporary amid concern about a predicted rise in July. Key points: - Ofgem's price cap fell by £117 to £1,641, reported as a 7% reduction from the previous cap. - Cornwall Insight and other forecasters have warned of a possible c.18% increase in bills from July, reported as roughly £288 a year. - An Energy UK spokesman said suppliers set direct debits using current information and projections; customers on fixed deals would not see increases until those deals end. Summary: The reported reduction provides short-term relief for households but is described by analysts and advocacy groups as temporary given forecasted increases in July. Undetermined at this time.