Until 30 September 2025, the cap will drop to £1,720 per year – £129 less than the last rate for the previous three months.
Gas and electricity bills will be cheaper until October, when an expected rise will take place for the winter months.
The regulator confirmed the energy price cap, which sets the highest rate per unit that gas and electricity companies can charge customers, would drop in May.
However, there are fixed rate tariffs and others available, which work out cheaper.
Ahead of the cap changing, experts urged households to fix to cheaper deals ahead of an anticipated increase in three months.
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‘Most households could still save’
Ben Gallizzi, energy expert at Uswitch.com, said: “Even though the price cap is going to drop to £1,720 for the summer months, most households could still save by switching to a fixed deal.
“With industry experts currently predicting a price cap increase in October, now is the time to find a well-priced deal and lock in cheaper rates. Compared to the July price cap, the cheapest available fix will save the average home around £145 per year.”
Gallizzi added: “If you’re not ready to fix, then consider a tracker tariff, which offers a guaranteed discount on the price cap. Before you switch, consider how long you’d like to be locked in for and any exit fees you would pay if you leave early.
“For most homes, switching is the best way to bring down your energy bills. We are encouraging customers to run a comparison and check what they could save by switching.”
Adam Scorer, chief executive of National Energy Action, added: “It’s welcome that the price cap is falling after a series of rises, but energy bills will still be significantly higher than they were before the energy crisis.
“Bills remain punishingly high for low-income households, many of whom are still paying off debt accrued during the energy crisis.”
