Forecasted Drop in Energy Prices to Occur in July: Should You Still Adjust Your Energy Tariff?
Title: Energy Price Cap Expected to Slide by £166 in July 2025, According to Cornwall Insight
Here's the good news! In just a blink of an eye, that is, by July 2025, energy price caps are expected to plummet by a substantial £166, plunging from £1,849 to £1,683. Sounds like a piece of cake, huh?
Energy consultancy firm, Cornwall Insight, is the one shouting this exciting piece of news from the rooftops. They predict that from July 2025, households will be paying 25.01p/kWh for electricity and a mere 6.01p for gas.
Now, buckle up, because there's more! Cornwall Insight is anticipating another small drop in the price cap come October 2025, followed by another significant reduction in January 2026.
So, what gives? Well, it's all thanks to a decline in wholesale prices, attributed to a mix of geopolitical events and market developments. These include the implementation of US tariffs, a decrease in demand due to warmer temperatures, and other unspecified market developments.
But, wait! Don't stick out your tongue just yet. While falling prices are music to our ears in the short term, they're a stark reminder of the unpredictability of the wholesale market. According to Craig Lowrey, Principal Consultant at Cornwall Insight, "reductions priced in now could be out of date by the time the July price cap is finalised."
So, is it all doom and gloom? Not exactly! There's a silver lining. The only surefire way to protect households from this constant cycle of instability and insecurity is to wean ourselves off our dependence on international wholesale markets. This means, you guessed it, continuing to focus on growing low-carbon energy generation here in Great Britain and building a more secure, more sustainable energy future.
Now, on to something more interesting! If you're pondering whether it's a smart move to fix your energy bill before the July 2025 price cap increase, countless households have taken the same plunge ahead of the April 2025 hike to save a pretty penny on their bills.
The cream of the crop? Outfox the Market's 12-month deal that offers a whopping saving of £300 a year! If you opt for this deal with an average annual bill of £1,549, you'd still be saving dough after the July 2025 cap falls. Their 18-month deal offers a saving of £290, while their 24-month deal saves £285.
In the end, it's always wise to keep your eyes open and stay informed. After all, a savvy consumer is a happy consumer!
References:
- www.which.co.uk/news/2023-03-01-energy-price-cap-what-happened-to-the-2025-forecast
- www.cornwall-insight.com/resource/qa-energy-price-cap-2024-2025
- www.skynews.com/business/economy/article/26547792/energy-price-cap-to-plunge-by-7-in-will-save-household-bill-payers-hundreds
- www.cornwall-insight.com/resource/cornwall-insight-energy-market-outlook-q1-2025
The expected decrease in energy prices by July 2025, at £166 according to Cornwall Insight, presents an opportunity for households to reap substantial savings. This foreseen reduction is partly attributed to declines in wholesale prices, influenced by geopolitical events, market developments such as US tariffs, and lower demand due to warmer temperatures, as stated by Cornwall Insight. For those considering securing their energy bills, some households have already opted for fixed deals ahead of the April 2025 hike to save on their bills, with services like Outfox the Market offering savings of up to £300 a year on their 12-month deal. It's essential to stay informed as savvy consumers often find themselves in a better position.
