Energy price cap will fall in July, expert forecaster predicts - is it still worth fixing your tariff now?
The energy price cap is expected to fall by £166 in July, according to expert forecasters.
Energy consultancy Cornwall Insight said the price cap will drop from £1,849 to £1,683 in July, an almost 9 per cent fall.
It means households would pay 25.01p/kWh for electricity and 6.01p for gas.
Further ahead, it expects another small fall in October’s price cap, before dropping again in January 2026.
It comes after a decline in wholesale prices, in part driven by geopolitical events and market developments, including the implementation of US tariffs, as well as a fall in demand due to the hotter temperatures.
Price cap change: Cornwall Insight predicts wholesale prices will fall this year
Cornwall Insight warns that while falling prices are good in the short term, they show how volatile the wholesale market is.
Any reductions priced in now could be out of date by the time the July price cap is finalised.
The impact of US tariffs could discourage Liquified Natural Gas (LNG) exports, which could push down US LNG prices, although there is no guarantee this would filter through to the UK.
The conflict in Ukraine could also push prices back, so Cornwall Insight warns that there will continue to be volatility in prices.
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Dr Craig Lowrey , Principal Consultant at Cornwall Insight says: "While a fall in bills will always be welcomed by households, we mustn’t get ahead of ourselves. We have all seen markets go up as fast as they go down, and the very fact the market dropped so quickly shows how vulnerable it to geopolitical and market shifts.
‘There is unfortunately no guarantee that any fall in prices will be sustained, and there is always the risk of the market rebounding.
'The only real way to protect households from this constant cycle of instability and insecurity is to reduce our dependence on international wholesale markets. That means continuing to focus on growing low carbon energy generation here in Great Britain and building a more secure, more sustainable energy future.’
Is it a good time to fix your energy bill?
Many households chose to fix their energy bill ahead of the April price cap increase to save money on their bills.
Suppliers are still offering competitive fixed deals that undercut April’s price cap, but with prices set to fall in July, will households still save money>
The best deal on the market currently is Outfox the Market’s 12-month deal, which offers a saving of £300 a year. This means that if you chose to fix now with an average annual bill of £1,549, you’d still be saving money once the cap falls in July.
Its 18-month deal offers a saving of £290 while its 24-month offer saves £285.
