Energy Prices Are Decreasing This July

Starting July 1, 2025, the energy price cap in the UK will be reduced by 7%, which will bring the average annual dual fuel bill down from £1,849 to £1,720. This adjustment, announced by Ofgem, reflects the ongoing volatility in global wholesale energy markets.

What Is the Energy Price Cap?

The energy price cap, implemented by Ofgem in 2019, limits the maximum charges for gas and electricity for customers on standard variable tariffs. It protects consumers from high costs while maintaining a fair energy market. Customers on fixed tariffs are unaffected by the price cap.

The Price Cap Is Decreasing

It will be welcome news to many that energy prices are coming down. The warmer spring weather has reduced the demand for gas heating, which has ultimately affected wholesale energy prices.

The slight decrease would bring the energy price cap back to the levels seen at the beginning of the year. However, this is still approximately 60% higher than the cap set during the summer, before Russia invaded Ukraine, which had a huge impact on global energy prices.

How This Affects You

Over the next month, we'll contact all customers on our standard variable tariff, So Flex, to let them know their new unit rates and standing charges from 1 July. We'll also contact customers whose Direct Debit payments need to change due to this update—this will depend on your energy usage and current account balance.

Despite prices decreasing, if you have a debt on your account, we will likely increase your Direct Debit amount. This is to ensure your balance is in a better position for the rest of the year.

There's nothing you need to do right now, but if you'd like to avoid future price changes, you may want to consider switching to a fixed tariff. It's important to note that the cap sets a limit on unit rates and standing charges, meaning your actual bill will depend on your energy consumption.

Protecting Yourself from Market Volatility

With energy prices subject to fluctuations, switching to a fixed tariff can provide stability and protect you from sudden increases in the market. A fixed tariff locks in your unit rates for a set period, ensuring your costs remain predictable. If you're considering switching, check out our latest fixed tariffs on our Tariffs page.

Energy-Saving Tips

Reducing your energy consumption can help mitigate the impact of the price increase. Consider implementing the following strategies:

• Efficient Heating: Set your thermostat to the lowest comfortable temperature and ensure your home is well-insulated.
• Appliance Usage: Turn off appliances when not in use and opt for energy-efficient models.
• Lighting: Use LED bulbs and make the most of natural light during the day.

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For more tips, visit our Energy Saving Tips page.

We're Here to Help

We're committed to supporting our customers through these changes. If you have questions or need assistance, please explore our help centre.

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