
Household energy bills to fall by £129 as price cap drops
Ofgem, the energy regulator, has set its price cap – the amount suppliers are allowed to charge their customers – at £1,720 per year, falling from its current cap of £1,849.
It follows three consecutive increases in bills that have heaped pressure on consumers and driven the rate of inflation up. Ofgem changes its price cap every three months.
Energy industry analysts at Cornwall Insight this week predicted that another 'modest drop' would follow in October, with another to come in January.
The fall in household's bills comes after Donald Trump's trade war hammered gas and oil prices as uncertainty over tariffs weighed on prices.
At the same time, Opec cartel members have been pushing through oil production increases, adding further downwards pressure.
Adam Scorer, chief executive of National Energy Action, said despite the fall household bills still remained 'punishingly high'.
He said: 'Four years of extraordinarily high energy bills has taken its toll. We hear heart-breaking cases every day.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Reuters
27 minutes ago
- Reuters
Dollar slides on easing trade tensions, Fed expectations
SINGAPORE, June 12 (Reuters) - The dollar slid on Thursday on further signs that U.S. President Donald Trump may adopt a softer stance in tariff negotiations and heightened expectations of Federal Reserve rate cuts. Trump said on Wednesday he would be willing to extend a July 8 deadline for completing trade talks with countries before higher U.S. tariffs are imposed. U.S. Treasury Secretary Scott Bessent suggested earlier that the Trump administration may offer extensions from a July trade deal deadline for countries negotiating in good faith. The remarks renewed dollar weakness, lifting the euro to a seven-week high. It last bought $1.1525. The greenback lost 0.43% against the yen and 0.34% against the Swiss franc to last trade at 143.98 and 0.81725, respectively. Against a basket of currencies, the dollar fell to its weakest since April 22 at 98.327. "It's hard to tell whether there is a masterplan behind this, but common sense would suggest that President Trump is trying to create a level of urgency in terms of trade negotiations," said Rodrigo Catril, senior currency strategist at National Australia Bank. "I think the market, in terms of the size of the moves, is becoming a little bit more sanguine about what this all means... the market is also very wary that the picture could change quite dramatically in a week's time or two weeks' time." Elsewhere, sterling was up 0.38% to $1.3588. The Australian dollar ticked up 0.05% to $0.6506, while the New Zealand dollar rose 0.1% to $0.6033. On Wednesday, data showed U.S. consumer prices rose less than expected in May, leading traders to ramp up bets of a Fed cut as early as September and keeping pressure on the dollar. Thursday's producer price index data will be the next test for markets. The offshore yuan was last a touch stronger at 7.1953 per dollar, helped slightly by news that a fragile truce in the U.S.-China trade war was restored as both sides reached a deal following talks in London this week. "Full details have not been published, and it remains unclear if the talks brought the two largest economies closer to productive cooperation," said Mantas Vanagas, senior economist at Westpac. The euro was clinging to strong gains on Thursday, having jumped against most other currencies in the previous session. Against the yen, the common currency last stood at 165.88 having risen to its firmest since October at 166.42 on Thursday. It was up 0.13% against the Aussie , extending a 0.9% gain from Thursday, and had also touched a one-month high of 84.88 pence overnight . While there was no immediate trigger behind the moves, analysts say the euro has over the past week drawn support from hawkish European Central Bank (ECB) rhetoric. Last week, the ECB cut interest rates as expected but hinted at a pause in its year-long easing cycle after inflation finally returned to its 2% target. "Expectations of fewer previously expected ECB rate cuts have lent some support to the euro," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. That contrasts with the likely resumption of a Fed easing cycle later this year, and as Trump has repeatedly called for U.S. rates to be lowered. Trump said last week that a decision on the next Fed chief will be coming soon, adding that a good Fed chair would lower interest rates. The euro has risen nearly 11% for the year thus far, helped in part by a weaker dollar and as investors pour money into European markets in a move away from the U.S.


BBC News
37 minutes ago
- BBC News
The World Tonight Will voters feel better off from Chancellor's spending plans?
What would you do with a trillion pounds of public money over the next four years? The Chancellor says "renewing Britain" is at the heart of her plans. So when will voters start to feel better off? We ask a Treasury Minister. Also on the programme: After the US Ambassador to Israel told us that Muslim countries should give up their land to create a Palestinian state - we get reaction from a senior Palestinian official. And one of the most influential figures in the history of pop music, Brian Wilson - the creative genius behind the Beach Boys - has died. The veteran DJ Bob Harris - who knew him for more than five decades - pays tribute.


BBC News
40 minutes ago
- BBC News
Aukus: US to review submarine pact as part of 'America First' agenda
The US has launched a review of its multi-billion dollar submarine deal with the UK and Australia, saying the security pact must fit its "America First" the trilateral pact, widely seen as a response to the growing power of China, Australia is to get its first nuclear-powered subs from the US, before the allies create a new fleet by sharing cutting-edge Australia and the UK - which did its own review last year - have sought to play down news of the US probe, saying it is natural for a new administration to move comes as Australia faces pressure from the White House to lift its military spending, from 2% to 3.5% of GDP, a push so far resisted by Canberra. The agreement - worth £176bn ($239bn; A$368bn) - was signed in 2021, when all three countries involved had different leaders."The department is reviewing Aukus as part of ensuring that this initiative of the previous administration is aligned with the President's America First agenda," a US defence official told the BBC."As [US Defense] Secretary [Pete] Hegseth has made clear, this means ensuring the highest readiness of our servicemembers, that allies step up fully to do their part for collective defense, and that the defense industrial base is meeting our needs."The review will be headed up Elbridge Colby, who has previously been critical of Aukus, in a speech last year questioning why the US would give away "this crown jewel asset when we most need it".Defence Minister Richard Marles, speaking to local Australian media on Thursday morning local time, said he was optimistic the deal would continue. "I'm very confident this is going to happen," he told ABC Radio Melbourne."You just need to look at the map to understand that Australia absolutely needs to have a long-range submarine capability."Some in Australia have been lobbying for the country to develop a more independent defence strategy, but Marles said it was important to "stick to a plan" - a reference to the previous government's controversial cancellation of a submarine deal with France in favour of Australian government spokesperson told the BBC it was "natural" that the new administration would "examine" the agreement, adding the UK had also recently finished a review of the security pact between the long-standing allies. There is "clear and consistent" support for the deal across the "full political spectrum" in the US, they said, adding Australia looked forward to "continuing our close cooperation with the Trump Administration on this historic project".A UK defence spokesperson told the BBC it was "understandable" for a new administration to look at the deal, "just as the UK did last year". Aukus is a "landmark security and defence partnership with two of our closest allies", the spokesperson said, and "one of the most strategically important partnerships in decades, supporting peace and security in the Indo-Pacific and Euro-Atlantic".