Millions of households across Great Britain will make it easier to make your energy bills easier this summer after the energy regulator from Geme has announced a reduction in the price limit by 7%, which reduces the average annual bill from 1 July to 1,720 GBP.
The decline of 129 GBP follows a sharp increase of 6.4% in April, which had increased average annual invoices to 1,849 GBP. The upcoming reduction reflects a significant decline in gas prices in wholesale, which, according to the OFGEM, is around 90% of the reduction, the rest due to changes in supplier operating costs.
The upper limit, which can limit the maximum suppliers for customers for standard variables per unit of gas and electricity, apply in England, Wales and Scotland. It does not apply in Northern Ireland, which has its own energy market structure.
The decline in energy prices in wholesale was driven by a mixture of geopolitical and seasonal factors, including milder spring weather, and renewed fears about global economic growth according to President Trump’s recent tariff announcements.
However, analysts from Cornwall Insight warned that they could continue to follow in the next two quarters, but they still depend on unpredictable variables such as weather patterns, Russia war in Ukraine and global trade voltages.
Despite the reduction in the price limit, the energy bills of 152 GBP remain higher than in July 2023 and 52% about the advisory of citizens over the pre -crises. The charity estimates that almost seven million people in Great Britain are due to their energy bills, and has to introduce their demand for the government, targeted support and improvement in energy efficiency for home algia for the introduction of targeted houses.
“This decline in energy prices will reduce the burden for some households, but the bills are still significantly higher than before the crisis,” said lady Clare Moriarty, managing director of Citizens Rat.
“The government must provide more targeted invoice support and invest in the improvement of five million houses with energy -saving measures.”
Tim Jarvis, General Director for Markets, welcomed the reduction, but admitted that many households continue to fight.
“A decline in the price limit will be welcome for consumers and reflects a reduction in the international price for wholesale gas,” he said. “However, we are very aware that the prices remain high.
“You do not have to pay the price limit out there. Buy your supplier out there. Talk to your supplier and consider switching to direct direct debit or intelligent pay-as-you-go, which could save up to 136 GBP per year.”
According to the Households, 35% of households are now fixed tariffs, compared to 15% in the previous year, since more competitive business returns to the market. Consumer groups and price comparison services encourage households to compare tariffs and block savings while the prices are falling.
In the middle of the record levels of energy debt, the suppliers urge the government to introduce a “social tariff” in order to protect the strongest endangered. Jarvis confirmed that the “everything we can do to support consumers today”, including the development of reforms into constant charges and researching new ways to support households that are caught in debts.
“We urge further changes to help consumers this winter,” he said.
The energy price limit introduced in 2019 will be checked quarterly and is intended to protect consumers who are not regularly overloaded by suppliers from standard variables. While many have shielded from price disorders, critics argue that more targeted support for households with low incomes is urgently needed to tackle the long -term affordability crisis.
Since the energy prices show preliminary signs of loosening, the pressure now lies on the government and the regulatory authority to ensure that the support is the most achieved and to find the energy market for future-proof for a volatile winter.