How do we make the most of falling energy prices?

HOUSEHOLDS across Britain will see their energy bills fall from July 1 after the regulator lowered its price cap by 7%.

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Ofgem's price cap - which sets a maximum rate per unit and standing charge that can be billed to customers for their energy use - will fall by £129 for an average household per year, or around £11 a month, over the three-month period of the price cap.

What is Ofgem's price cap?

The energy price cap sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use.

The figures provided by Ofgem indicate what a household using gas and electricity, and paying by direct debit, can expect to pay if their energy consumption is typical.

It is important to note that it does not limit a home's total bills because people still pay for the amount of energy they use - so if it is above the average they will pay more, and if it is below they will pay less.

Energy is regulated separately in Northern Ireland.

Why is the price cap falling?

Ofgem said a recent fall in wholesale prices was the main driver of the overall reduction.

Industry analysts Cornwall Insight said the fall followed US President Donald Trump's aggressive tariff plans leading to a significant slump in gas and oil prices.

However, the 7% cut is slightly reduced from a previously predicted 9% drop after easing trade tensions in recent weeks.

Will bills continue to fall now?

Cornwall Insight said it expects the July fall to be followed by a “modest drop” in October and another similar dip in January next year although these are only predictions, and the wholesale market is heavily susceptible to international politics and tensions.

Do I need to do anything to make the most of these falling prices?