Play all audios:
OFGEM SAID THE CAP ON GAS AND ELECTRICITY CHARGES WOULD FALL FROM JULY BY THE EQUIVALENT OF £129 A YEAR FOR THE AVERAGE HOME AFTER A SHARP SLUMP IN EUROPE’S GAS MARKET PRICES. 12:00, 31 May
2025 Octopus Energy has urged customers to act and lock into a cheaper deal - with a new price cap a £129 saving for consumers. Ofgem said the cap on gas and electricity charges would fall
from July by the equivalent of £129 a year for the average home after a sharp slump in Europe’s gas market prices. In an email, Octopus - which is rivalled by EDF, EON, British Gas and more
- reacted to the price cap change. It said: “From July 1st - September 30th 2025, the energy price cap for a typical home using gas and electricity and paying by Direct Debit will be £1,720
per year. This is 7% less than the April price cap, and will knock about £11 off monthly bills. “However, even though variable rates have dropped, we think it's still worth locking in
your prices on a fixed tariff. These currently offer our cheapest rates, meaning you could save more in the long run. READ MORE UK SET TO SIZZLE IN 'GLORIOUS' 27C MINI-HEATWAVE
WITH 33 COUNTIES IN ENGLAND HIT “This could change in the future, so check out our price cap predictions page for a sense of how we think prices could fluctuate over the year. Just bear in
mind there are no guarantees.” Article continues below Tim Jarvis, the director general of markets at Ofgem, said: “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.”
The chief executive of the charity Citizens Advice, Clare Moriarty, said: “Today’s announcement will be cold comfort to the millions paying off a mountain of debt on top of their monthly
costs. Article continues below “The government has said it hopes to provide more support to pensioners this winter but we know that people with children are often struggling most of all with
energy. It must provide more targeted energy bill support to those hardest hit, and upgrade 5m homes with money-saving energy efficiency measures.”