Ofgem confirms the energy price cap will 'drop considerably' in July

Energy regulator Ofgem has confirmed that the energy price cap is set to 'drop considerably' in July. Here's what you need to know.

Yesterday during an appearance on ITV's Good Morning Britain, Neil Kenward, director for strategy and decarbonisation at Ofgem confirmed that the price households pay for energy will decrease significantly in the upcoming energy price cap.

This confirmation comes ahead of next week's Ofgem announcement on the new price cap rate from July 1st, which is predicted to fall below the government's current Energy Price Guarantee, which was previously extended by three months at its current level of £2,500.

During a discussion with Ofgem's Neil Kenward on Good Morning Britain, financial expert and founder of Money Saving Expert, Martin Lewis, shared his predictions on the energy price cap in July.

'I'm predicting a drop of 17.5 per cent when the price cap comes out in July. Am I about right?' asked Martin Lewis.

Neil Kenward responded: 'So we're not going to give figures on our price cap forecast. We publish the price cap number next week (Thursday 25th May). It's obviously sensitive until then – we haven't actually finalised a number.'

'But I can be clear that the number will be down considerably on the £2,500 limit that applies at the moment for that average annual bill.'

While the exact amount is yet to be disclosed, Martin Lewis speculates ahead of the announcement a reduction of around 15 per cent to 20 per cent drop on a typical utility bill.

Following the confirmation, this anticipated drop has many households eagerly holding fast for the announcement next Thursday.

If you've been struggling to pay your energy bills, rest assured that there are plenty of ways to save energy at home in an attempt to reduce your energy bill ahead of the predicted energy price cap drop.

From opting for energy-saving products to steering clear of easily-avoided mistakes adding to your energy bills, there are a variety of small changes you can incorporate into your life to make that big difference.

However, there's no doubt that we'll be also tuned in and waiting on the precise number to be released on Thursday 25th of May.