You can see how much your energy bill will drop by using our calculator as Ofgem lowers price cap

Energy bills are set to fall for many households in the UK from July - use our calculator below to work out just how much your bill will drop by.

A typical household’s energy bill will reduce by £122 a year after Ofgem announced the latest quarterly energy price cap. It means households that use the average amount of gas and electricity will pay £1,568 a year. That’s down from the current level of £1,690 a year, a difference of £122.

The cap sets the maximum price for a unit of energy, not for the total bill, so households could pay more. The new cap sees unit prices for both gas and electricity fall by 9%. Standing charges have also fallen, but by less than 1%.

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You can calculate the changes to your bill by using our calculator. Simply enter the amount you currently pay for both gas and electricity and it will calculate a new estimate based on the new cap.

Our energy calculator only applies to dual fuel direct debit customers. It won't work if you have a prepayment meter or you pay on receipt of bills. These methods of paying have different unit rates and standing charges.

Will Owen, energy expert at Uswitch.com, said: "A 7% drop in the energy price cap from July to September is good news for the 28 million households on standard tariffs, who should see bills coming down. While this is the lowest price cap we’ve seen in over two years, storm clouds are on the horizon with the cap predicted to rise again in October.

"This would mean higher rates over the winter, when we use the most energy for heating our homes. If you’d prefer to avoid the uncertainty of rising costs in winter, now is a good time to think about taking a fixed energy deal, which would let you lock in rates while prices are cheaper. Fixed energy tariffs are the cheapest they’ve been since summer 2021 and there are some great value deals currently worth considering."

Commenting on the latest price cap announcement, Citizens Advice chief executive Dame Clare Moriarty said: "Today's news will give small comfort to households still facing cost-of-living pressures. The fall in the energy price cap reduces bills slightly, but our data tells us millions have fallen into the red or are unable to cover their essential costs every month.

"People cannot rely on lower energy prices alone to escape the financial issues they've been experiencing. That's why we need better targeted energy bill support for those really struggling to keep the lights on or cook a hot meal."