Customers with British Gas, EDF, E.ON, OVO, Octopus Energy and various other suppliers are being urged to take action before Monday. That’s because energy regulator Ofgem is cutting prices from Tuesday, July 1, for all customers not currently on a fixed deal, which is most UK households. Ofgem has announced that from July 1, prices will be reduced by 7% for gas and electricity on average, taking the typical household bill down from £1,849 per year to £1,720.
It’s good news after a series of price increases which began in October 2024 and continued in January and April, although prices overall will still be higher than they were a year ago. From Tuesday, electricity prices will go down from 27.03p per unit to 25.73p, with standing charges dropping from 53.80p to 51.37p per day.
For gas, prices will go down from 6.99p per unit to 6.33p, while standing charges drop from 32.67p to 29.82p.
Ofgem said about the change: “Between 1 July and 30 September 2025, the energy price cap is set at £1,720 per year for a typical household that uses electricity and gas and pays by Direct Debit. This is a decrease of 7% compared to the cap set between 1 April to 30 June 2025 (£1,849).
The price cap is based on typical household energy use. Read how typical household energy use is worked out in our Average gas and electricity usage guidance.
The price cap also makes sure that prices for people on a standard variable tariff (default tariff) are fair and that they reflect the cost of energy.”
It is important that you take a meter reading before, or no later than by the end of, Monday to keep your bills as accurate as they can be.
That’s because, especially if you have a non-smart meter, you could end up being inadvertently charged the higher price for energy you used at the cheaper rate.
For example, if you waited until Tuesday, when prices are lower, to use some expensive appliances like charging your car, running your tumble dryer or powering a hot tub, your energy company may think you have used some of that power on Monday, when prices were 7% higher. So your best course of action is to take a meter reading before Monday ends, along with a photo to prove it. Even if you have a smart meter, it’s worth taking a manual reading just in case the meter isn’t working correctly.
