Regulator Ofgem confirmed the energy price cap is coming down from July with around a seven per cent drop, meaning average bills could fall by £129.
While the usual reminders apply about the price cap relating to charges for units of energy, rather than maximum bills, it’s still a big boost for households after April’s rises in council tax and other costs.
Ofgem’s last increase came around the same time, which contributed to overall inflation in the UK increasing to 3.5 per cent in April. This is likely to have the knock-on effect of seeing interest rates remain higher for longer than anticipated.
All the same, the impending reduction in energy bills will be welcome – and if you shop around rather than sticking with whatever your current provider immediately offers, there’s a fair chance you could save more than £129 off your upcoming bills.
Make sure to find the right deal for your property
If your deal is ending soon, your current provider will give you options to switch to their best tariffs, but they might not be the cheapest or most suitable ones for you overall.
There are a number of options for you to begin your search, however, which don’t take up too much time and could save you plenty in the long run.
To start with, Uswitch should be your first port of call: enter your address, confirm your current provider, enter your email address and get the best options they have in their database.
Uswitch has been running for 25 years and works closely with Ofgem to include everything consumers need to know – and they’ll even do the switching for you if you find the right tariff on their site.
Alternative options are GoCompare and Which?, while a less well-known site is WattsWatt – a new, privately run checker website which promises to find the cheapest energy tariff for you based on your postcode.
One extra tip to save even more money: some browser add-ons or cashback sites like Quidco will sometimes offer you an extra percentage of your money back if you log in before buying. Right now on Uswitch, for example, you can get up to £26 back through Quidco if you complete a transaction to change your energy provider there.
It’s worth a look!
Best potential deals
While we’ll list a few of the top deals around today, it is important to note that energy deals and available tariffs can change quickly depending on uptake, as well as news like Friday’s.
Discounts also tend to be measured against the current price cap, not the future one, and not every deal is available to everybody, so again, make sure you check around to find the one which suits you. That said…
Outfox the Market’s Fix’d Dual May25 12M v5.0 tariff is picked by several places as one standout deal to consider. It’s a dual-fuel tariff, with a 12-month fix. Longer terms are also available.
EDF has an Energy Simply Fixed May26v5 tariff available, which is ranked as the most popular on Uswitch at present.
So Energy has several cropping up as good options right now, with their So Clove and So Chestnut tariffs in particular stacking up well.
And if you only want electricity rather than a dual fuel switch, the Outfox the Market Fix’d Elec May25 12M v3.0 tariff may be one to consider.
Always consider exit fees and term duration as well as energy unit costs.
Next Ofgem announcement
Ofgem present their latest price cap adjustments every three months.
That means the next review will be confirmed on 27 August 2025, which will cover the period from 1 October 2025 to 31 December 2025.
If your fixed-term deal isn’t due to run out until later in the year, mark those dates and check back later to ensure you still get the best deal possible.
