Energy calculator: See how much YOUR bill will fall by as Ofgem confirms price cap

Energy bills are set to fall from July as announces its new price cap - and you can use our calculator to see how much less you will pay.

The regulator changes the price cap every three months, with the latest one set to take effect on July 1 and continue through to September 30.

The new cap means that the typical household annually for gas and electricity, for a standard dual-fuel direct debit plan.

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This represents an average fall of 7% per household compared to the cap for between April and June. It works £129 a year less for the typical bill. You can estimate how much your energy bill will drop from July by using our calculator.

It also means that bills will be 28%, or £660 lower than at the height of the energy crisis in 2023. The impact of these changes will vary from household to household though, depending on how much fuel you use.

The cap does not limit household total bills - the £11 monthly fall is based on typical usage - but rather the amounts charged per unit and the daily standing charge.

Tim Jarvis, Director General of Markets at Ofgem, said: “A fall in the price cap will be welcome news for consumers, and reflects a reduction in the international price of wholesale gas. However, we’re acutely aware that prices remain high, and some continue to struggle with the cost of energy.

“The first thing I want to remind people is 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. And changing your payment method to direct debit or smart pay as you go can save you up to £136.

“In the longer term, we need an energy system where prices are insulated from the volatile international gas market, and which ensures more stable prices and energy security. And we’re working closely with government to get the investment we need to reach our clean power and net zero targets as quickly as possible.

“We’re also doing everything we can to support consumers today and pushing ahead with more changes to help consumers. This includes working on ways to support those trapped in energy debt and bringing in reforms to standing charge tariffs for this winter.”

The Chief Executive of National Energy Action - a fuel poverty charity - Adam Scorer says, “Any fall in the price of energy is always welcome news, but this is a short fall from a great height. Bills remain punishingly high for low-income households.

“Four years of extraordinarily high has taken its toll. We hear heart-breaking cases every day.

“The likely expansion in eligibility for the Winter Fuel Payment will be a relief for some, but National Energy Action is calling for deeper energy bill support and a real focus to support households out of debt.”