Households across the country will be happy to hear that some relief is coming their way this summer as energy bills are forecast to drop by 7% from July 2025. According to Cornwall Insight, the typical annual dual-fuel bill is projected to decrease from £1,849 to £1,720. Ofgem have announced today (23/05/25) to confirm that this drop in energy bills will go forward.
This is a massive saving of £129 for millions of customers who are on a standard variable tariff.
Why Are We Seeing Summer Energy Bills Drop?
The anticiapted drop comes after three price increases in a row from Ofgem’s quarterly price cap and can be attributed to falling wholesale gas prices, influenced by factors such as warmer months and increased EU gas reserves.
Although this is good news, experts warn that the energy crisis is far from over. Even with this reduction, bills remain about 60% higher than they were before the Ukraine war.
Craig Lowrey from Cornwall Insight warns that while prices are falling, they are not dropping enough to relieve the finacial strain that many housholds are currently facing. He stresses the risk of energy still being unaffordable for numerous families.
What’s Being Done In Response to These Financial Challenges?
The UK government has introduced several grant schemes aimed at improving home energy efficiency and reducing bills:
- Warm Homes Plan: This government proposal aims to upgrade millions of cold homes to bring permanent relief from high energy bills. It also aims to help the UK meet it’s 2050 Net Zero climate targers.
- Boiler Upgrade Scheme: Homeowners can recieve grants of up to £7,500 to replace fossil fuel heating systems like gas boilers to replace them with renewable systems such as heat pumps.
These government backed grants not only aim to reduce energy bills but also contribute to the UK’s climate targets by promoting cleaner energy solutions.
For those who are seeking assitance, the Energy Advice Helpline offers guidance on applying for these governments-backed grants and making your home more energy-efficient. Taking advantage of these programs can provide long-term savings and help mitigate the impact of fluctuating energy prices.
