UK energy cap cut by 7% but Britons still paying higher bills
By Frank Prenesti
Date: Friday 23 May 2025
(Sharecast News) - UK household energy bills will fall by 7% from July, industry regulator Ofgem said on Friday, although they will still be higher year on year amid a squeeze on consumers from local tax rises and massive water charge increases.
A typical energy bill will drop by £129 to £1,720 per year when the regulator's new price cap per unit of electricity or gas comes into force.
This represents a 28%, or £66, cut from prices at the height of the energy crisis in 2023 when the government implemented the energy price guarantee. However, prices will still be £152, or 10%, higher than the same period last year.
The news will be of little comfort to hard-pressed households who have endured what has been dubbed as "awful April", with the biggest increase to water bills in almost 40 years, alongside sharp hikes in council tax, mobile phone and broadband tariffs.
"This drop in energy prices will ease the burden of high bills for some households. But the Government must not lose perspective: bills will still be 52% higher than before the energy crisis and nearly seven million people live in households that have fallen behind on bills," said Citizens Advice chief executive Clare Moriarty.
"Today's announcement will be cold comfort to the millions paying off a mountain of debt on top of their monthly costs."
Reporting by Frank Prenesti for Sharecast.com
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