Ofgem Lowers UK Energy Price Cap
Analysis based on 7 articles · First reported May 19, 2025 · Last updated May 23, 2025
The expected reduction in the energy price cap by United Kingdom — Ofgem will provide some relief to households in the United Kingdom, potentially boosting consumer spending power. However, the impact on energy suppliers is mixed, as lower prices could reduce revenue but also alleviate pressure from struggling customers.
United Kingdom — Ofgem is set to announce a 7% reduction in the household energy price cap for July, lowering typical annual bills by £129 to £1,720. This follows three consecutive increases and is attributed to a slump in global gas and oil prices, partly influenced by Donald Trump's tariff policies. While a welcome development for consumers, experts from Cornwall Insight note that bills remain high compared to earlier in the decade, and many households still face affordability challenges. The price cap, introduced by the Government in January 2019, is adjusted quarterly based on wholesale energy costs and applies to England, Scotland, and Wales.
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