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When will energy prices go down?

Energy prices will fall by 7% in July for millions of households. But after recent punishing energy price hikes, costs will still be high. We look at what’s expected to happen and how you can save on your energy bills.

will energy prices go down

AT A GLANCE

When will energy prices go down? A summary

  • Energy prices will fall by 7% for millions of households in July 2025.
  • But energy costs will still be high following energy bills hikes of 6.4% in April 2025, 1.2% in January and 10% last October.
  • However, Ofgem says consumers could make annual savings of £200 on energy bills by switching energy suppliers and fixing their deal.  

Use our free tool to compare energy deals and see instantly how much you can save on energy costs by switching your provider.

When will energy prices go down in 2025

Energy bills will fall by 7% in July 2025 for millions of UK households when the new energy price cap, set by Ofgem, comes into force. This means a typical annual bill for a dual-fuel customer paying by direct debit will cost £1,720, down from the current level of £1,849.

But you could make bigger savings on your energy bills by shopping around and fixing your tariff. Ofgem says this could give annual energy bills savings of £200 – read on for more on this.

July 2025 energy price cap predictions – latest news

Ofgem announces its next price cap around 6 weeks ahead of it coming into force. But a number of energy price cap forecasts are made much further in advance:

  • EON: EON’s energy price cap forecast on 23 May 2025 was for the price cap to fall to £1,690 in October 2025 and rising slightly to £1,696 in January 2026.
  • EDF: While EDF’s gas and electricity prices forecast on 27 May 2025 will increase in the UK to £1,739 in October 2025, before rising again to £1,748 on 1 January 2025.
  • Cornwall Insight: In May 2025, Cornwall Insight’s accurately predicted July’s energy price cap of £1,720. It currently expects the October price cap to show ‘little change’ compared to July.
  • British Gas: While British Gas’s energy price cap forecast on 27 May 2025 is for it to increase in October 2025 to £1,730.

How accurate are these energy price cap predictions likely to be?

The further ahead the forecast, the less likely it is to be accurate. British gas says, ‘The energy market has been more stable recently, but surprises can happen. Global politics play a big role in energy prices. For example, if conflicts in Ukraine, or the Middle East worsen, wholesale gas prices could go up. This would eventually mean higher bills.’

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Should I fix my energy bill

Yes. Consumers are being urged to shop around for cheaper energy deals despite energy bills set to fall in July. Ofgem says shopping around and switching to a fixed deal could save money for many customers; it says shopping around could lead to an annual saving on energy bills of £200.

“I want to remind people that you don’t have to pay the price cap – there are better deals out there so it’s important to shop around, and talk to your existing supplier about the best deal they can offer you,” said Tim Jarvis, director general of markets at Ofgem.

Some 35% of households are currently on fixed energy tariffs compared to just 15% a year ago when fewer deals were available.

Energy advice guru Martin Lewis says, “The cheapest year-long standalone fixes right now are about 18% LESS than the current Cap (about 12% less than the new July Cap), so if you get a good fix now you can lock in at a cheaper rate for a year, get price certainty and save instantly.

There are also energy deals available that track under the energy price cap. Or that follow the energy price cap’s unit rates but have lower standing charges. So make sure you shop around and switch energy suppliers ASAP if you find a better deal.

But bear in mind that exactly what will happen to energy prices in the longer term is subject to debate and global developments.

Use our free tool to compare energy deals and see instantly how much you can save on energy costs by switching your provider.

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What will the impact on energy bills be?

July’s energy price cap fall will see energy bills go down for millions of households. But it’s important to note that the reduction in energy costs will come after a succession of price hikes.

This table illustrates how much energy prices have increased in recent months.

Time periodEnergy price cap amount
Old cap: 1 October -31 December 2024Up 10% to £1,717 a year
Old cap: 1 January – 31 March 2025Up 1.2% to £1,738 a year
Current cap: 1 April – 30 June 2025Up 6.4% to £1,849
Future cap: 1 July-31 September 2025Go down to £1,720

Current energy prices in June 2025

If you’re one of the 21 million households in the UK on a standard variable tariff, here’s how the new price cap will change how much you pay:

CURRENT Energy price cap rates from 1 April to 30 June 2025FUTURE Energy price cap rates from 1 July to 30 September 2025
GasUnit rate: av 6.99 per kWh Standing charge: 32.67p per dayUnit rate: av 6.33 per kWh Standing charge: 29.82p per day
ElectricityUnit rate: av 27.03p per kWh Standing charge: 53.80p per dayUnit rate: av 25.73p per kWh Standing charge: 51.37p per day

Am I on the energy price cap?

  • If you’re wondering if this affects you, the Ofgem price cap applies to around 21 million households on variable energy tariffs – so it sets what two thirds of homes in England and Wales will pay. You’ll know you’re affected if you are on a tariff called something like standard, flexible or variable rate rather than fixed.

How the energy price cap works 

  • The energy price cap limits the unit rates and standing charges energy suppliers can charge for their standard tariffs. However, the Energy Price Cap figure – currently £1,849 per year- is based on the usage of a ‘typical’ household using gas and electricity and paying by Direct Debit. It’s not the maximum you’ll pay. If you use more energy than a typical household, you’ll pay more than the price cap and if you use less, your bill will be lower.

Factors influencing prices

UK households have been facing increased energy costs since 2022, when the conflict between Russia and Ukraine broke out. While energy costs aren’t as high as the peaks we’ve seen, energy prices are still high and unaffordable for many.

Avoid rising energy prices and save money by switching to a fixed energy deal. Find out instantly how much you can save with our free switching service today

Switch energy supplier, save money

Compare energy deals, see how much you can save on electricity and gas, switch provider today.

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What’s the long term energy price forecast in the UK?

Cornwall Insight predicts that prices will remain relatively flat over the next three years, before beginning to fall from 2028. It expects that improved gas supplies will be better supported by renewable energy. The consultancy says a possible end to the war in Ukraine would also help ease pressures on energy.

But it says wholesale prices are likely to remain well above averages seen during the last decade, even by 2031.

Can I save if I switch now?

Yes, most people will be able to save on their energy bill by shopping around and switching to a cheap fixed tariff or a variable deal that charges less than the energy price cap. We’ve partnered with The Energy Shop to provide you with an instant tool for comparing tariffs and seeing how much you can save.

When you’re comparing deals, remember to check how long the fixed deal lasts for any whether you’ll need to pay any exit fees if you want to leave before the end of the deal.

It’s also a good time to check for the best deal if you’re moving house, if your current supplier has poor customer service or you want a specialist tariff such as an EV tariff.

Paula Higgins, Chief Executive of the HomeOwners Alliance, says, ‘Households will welcome the predicted falls in energy prices but after so many energy bills hikes, bills will still be high. We advise people to shop around and switch energy suppliers to ensure you’re on the best deal for you.’

Use our tool powered by The Energy Shop to compare energy suppliers to see how much you can save by switching energy provider.

Switch energy supplier, save money

Compare energy deals, see how much you can save on electricity and gas, switch provider today.

Compare energy deals

Standing charge changes

  • Energy regulator Ofgem is proposing to force energy firms to give customers the choice of energy tariffs with or without a standing charge.
  • Many households believe standing charges are unfair as they don’t have any control over how much they’re charged.
  • Ofgem recently carried out a consultation on the proposals that looked at a system of two tariffs, where the one without a standing charge would have a higher price for each unit of energy. Both would fall under the existing price cap system.
  • However, some charities say the plans are complex and could leave some vulnerable customers to make the wrong choice.

How to keep energy bills low

Once you’ve shopped around for the best energy deal, the other way to save on energy bills is to use less. You can do this by:

  • Insulating your home: There are all sorts of ways you can make your home more energy efficient from relatively inexpensive and very effective options like installing loft insulation, to more expensive undertakings like fitting double glazing or replacing your boiler. See if you can get a grant for a boiler upgrade and whether you can access any other help with our guide on energy grants. For more information see also our guide on how to make your home more energy efficient.
  • Draught-proofing your home: Professional draught proofing of windows, doors and blocking cracks in floors and skirting boards can cost around £250, but can save around £45 a year on energy bills. DIY draught proofing can be much cheaper. For this and more affordable tips, see our guide on How to keep your house warm for less.
  • Turn down your thermostat: Turning it down by 1 degree could cut your heating bills by up to 10%. You can also cut your heating bills by installing certain heating controls. If you don’t already have a room thermostat, installing one could save up to £70 a year. And consider getting a smart thermostat, which allows you to control your heating from your smartphone or table

For more ideas read out Top 10 Energy Saving Tips guide

Can I get help with energy bills?

Yes, some help is available for energy bills. For example, individual energy companies have hardship funds. Find out more in our guide on Energy grants and how to get them.

Avoid rising energy prices by shopping around and switching to a fixed energy deal. Find out instantly how much you can save with our free switching service today

Switch energy supplier, save money

Compare energy deals, see how much you can save on electricity and gas, switch provider today.

Compare energy deals

Ofgem’s energy price cap history

Here are the historic price changes to Ofgem’s energy price cap, which shows how energy bills have increased and decreased in recent years.

Price cap periodOfgem energy price capPrice cap change vs previous period
April – June 2025£1,849+6.4%
January – March 2025£1,738+1%
October – December 2024£1,717+10%
July – September 2024£1,568-7%
April – June 2024£1,690-12%
January – March 2024£1,928+5%
October – December 2023£1,834-7%
July – September 2023£1,976-37%
April – June 2023£3,116*-23%
January – March 2023£4,059*20%
October – December 2022£3,371*80%
Summer 2022£1,87754%
Winter 2021/22£1,21612%
Summer 2021£1,0849%

Source: Ofgem data. *This was replaced by the £2,500 Energy Price Guarantee

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