Major change to energy bills in July will save you £500

A major change to energy bills coming in July looks set to save everyone 7% on the cost of their gas and electricity. The new price cap will come into effect at the start of the month, cutting how much companies can charge you for your energy.

Experts at Cornwall Insight say they expect the average household energy bill to drop from £1,690 a year to £1,574 a year on July 1. That will be £500 lower than the same time last year.

The price cap changes every three months and is expected to go up again in October and then down next January. The actual figure fr July will be announced on May 24.

Craig Lowrey, principal consultant at Cornwall Insight, said: "Our projections suggest that from July, the average annual bill will fall by around £500 compared to last summer, offering further relief given the quarter-on-quarter drop seen in April.

"Of course, we must recognise lower prices don't erase all the problems. The very fact we are still seeing bill levels which are hundreds of pounds above pre-crisis levels underscores the ongoing challenges faced by households."

Richard Neudegg, director of regulation at Uswitch.com, told The Sun: "Households who want to lock in rates for price certainty should run a comparison to see what energy tariffs are available to them. There are many 12-month fixed tariffs available at rates cheaper than the current price cap, and even some that are 2% below these new predicted July rates."