Our response to the July 2025 energy price cap update

Independent energy research firm Cornwall Insight has predicted that from 1 July to 30 September 2025, the energy price cap will fall by 7%.

This means annual energy bills for a typical dual-fuel household in Great Britain paying by direct debit would be £1,720. This is a decrease of £129 a year from the current price cap level, or £10.75 a month. 

The energy price cap sets the maximum amount suppliers can charge for each unit of gas and electricity. So, your energy bills could be higher or lower depending on how much energy you use.

If youIf you live in Northern Ireland, your energy prices aren’t set by Ofgem. You can find out about energy prices from the Utility Regulator.

Responding to the energy price cap prediction, our policy manager Abigail Ward said:

“It’s welcome to see that energy costs are forecast to come down this summer, as people continue to struggle with the high cost of living. However, households will still be paying £100 more a year on their energy bills than last summer. This proves that we’re still feeling the impacts of fluctuating international wholesale energy markets.

“This is why we urgently need to see policy action from the UK Government to reduce energy bills by upgrading homes at scale.

“As we set out in our recent report, the Warm Homes Plan must be backed by the full £13.2 billion manifesto commitment if it’s going to be the turning point so urgently needed. Setting up a national advice service in England will be central to empowering households to take action and upgrade their homes. This must be delivered alongside a comprehensive financial offering to overcome the high upfront costs of insulation and low carbon technologies.

“Putting in place a long term, comprehensive roadmap to retrofit our homes will be crucial if the UK is going to achieve energy security and overcome persistently high energy bills.”

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