Energy Bills to Fall in July as Ofgem Confirms Price Cap Drop
Millions of electric car drivers are set to benefit from lower charging costs following major changes in the energy price cap by Ofgem. The new cap, effective from July 1 to September 30, will reduce energy prices nationwide by seven per cent, a move welcomed across the UK.
For a typical household using electricity and gas and paying by Direct Debit, annual costs will fall to £1,720, representing a monthly reduction of approximately £11. The price cap determines how much energy suppliers can charge per unit of energy and the daily standing charge, reviewed every three months by the energy regulator.
Electric vehicle drivers will see significant savings, with calculations suggesting they will collectively spend £1.7 million less each month on charging. Currently spending around £35 million monthly, this figure is expected to drop to £33.3 million from July. The average cost to fully charge an electric vehicle at home will decrease from £16.21 to £15.43, saving 78p per charge for a typical 60kWh battery.
Aidan Rushby, founder and CEO of Carmoola, commented on the price cap decrease, stating, “The upcoming decrease in Ofgem’s energy price cap offers a welcome boost for households across the UK, especially for electric vehicle owners who charge at home.” He added, “Reduced energy prices mean lower running costs, helping to make EV ownership more affordable as we move toward a battery-powered future.”
Rushby advised EV owners to “take advantage of off-peak energy tariffs where possible, charging overnight can make a real difference to monthly costs.” The decrease in energy prices is primarily attributed to falling global wholesale costs, according to Ofgem. The energy price cap will be reviewed again for the period from October 1 to December 31, with new levels to be announced by August 27.
