(Bloomberg) -- UK household energy bills will drop in July, the same week the country goes to the polls in an election where cost of living is a key issue.

Ofgem’s price cap will fall 7% to £1,568 from July 1, according to figures published by the regulator on Friday. The announcement comes just two days after Prime Minister Rishi Sunak started his campaign to convince voters to keep him in office. 

Although consumer bills have declined in recent months, they remain well above 2020 levels, before Sunak took office. The prime minister acknowledged the impact that spiking energy bills had on household finances in his speech on Wednesday announcing the election date of July 4. 


The Ofgem price cap, which represents an annual bill for a typical household, is largely a reflection of wholesale power and gas prices. The latest decrease was pegged by analysts to be even steeper, but geopolitical risks in the Middle East caused an increase in wholesale gas and power prices. 

“Whoever wins the next election inherits the responsibility to build fuel poverty out of inefficient homes and build greater protection into the regulation of the energy market,” National Energy Action Chief Executive Adam Scorer said.

Demand usually falls in summer so the impact of lower prices is felt less. Energy consultant Cornwall Insight Ltd. expects bills to increase slightly in October, coinciding with higher winter consumption, before falling again into 2025. 

Labour is also trying to address the issue of energy bills with voters, with opposition leader Keir Starmer promising to “harness Great British Energy to cut your bills for good.” The new publicly owned Great British Energy would invest in clean UK power capitalized with £8.3 billion in Labour’s first term, the party said earlier this year.

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