UK households will see energy bills fall by 7% after regulator Ofgem cut the price cap to £1,641 per year, down from £1,758. The reduction follows the scrapping of an energy efficiency scheme that had previously added to costs. The change takes effect immediately for millions of British consumers.

Energy regulator Ofgem announced the new price cap level after reviewing wholesale energy costs and market conditions. The previous cap of £1,758 had been in place since April, when an energy efficiency program was removed from calculations. This latest cut represents a significant relief for households facing high energy costs.

The price cap applies to approximately 22 million households on default tariffs across England, Scotland, and Wales. While bills will still remain above historical averages, the reduction provides some breathing room for consumers after years of energy price volatility.