Natural gas and electricity bills are expected to drop in July, when a new price cap takes effect.

Under the current cap, it is likely to reverse the increase in millions of households on April 1.

The annual bill for households using typical gas and electricity increased to £1,849 per year, and increased by £111 in April.

The maximum customer set for the energy price cap can charge a fee for each energy unit, but the actual bill depends on the gas and electricity you use.

Those who pay their bills every three months by cash or check pay £1,969.

This cap does not apply to Northern Ireland with its own energy market.

Your energy bill depends on the total amount of gas and electricity you use and how you pay for it.

The type of property you live in, the efficiency of energy saving, how many people live there, and the weather makes a difference.

The OFGEM cap is based on “typical homes”, using 11,500 kWh of gas and 2,700 kWh of electricity per year, and solving a single bill of natural gas and electricity bills by direct debit.

The vast majority of people pay their bills this way to help spread payments throughout the year. Those who pay every three months by cash or check will charge more.

When the cap changes, submitting meter readings means you won't charge for estimated usage at the wrong rate.

This is especially important when prices rise.

Customers working with smart meters do not need to submit a reading because their bills are calculated automatically.

Between April and June, households on the prepayment form paid a little less than those on direct debit, with a typical bill of £1,803, an increase of £113 from the previous quarter.

According to Ofgem, in January 2025, about 4 million households had prepayment meters.

Many have been in place for years, but recently installed some after customers struggle to pay higher bills.

Rules proposed in November 2023 Average suppliers must provide customers with more opportunities to clear their debt before switching it to meters. They cannot be installed in some homes.

Fixed price transactions are not affected by the energy price cap, which changes every three months and can rise or fall.

They provide certainty (usually one year or more), but you may get stuck if the energy price drops when you reach an agreement. You may also need to pay a fine to leave the fixed transaction as early as possible.

Energy regulator Ofgem said that wanting to know the security of its bill should consider reaching a fixed deal. However, it says they should make sure they understand all the fees.

Martin Lewis, founder of money-saving experts, recommends checking the entire market energy price comparison website to help find the best deals.

Conventional fees are fixed daily fees to cover the costs associated with gas and electricity supply. They vary slightly by region.

On April 1, the average power station charge dropped from 60.97p to 53.8p, but the average gas station cost increased from 31.65p to 32.67p

Some customers in London, North Wales and Mersey have seen greater growth.

Campaigners believe that standing accusations are unfair because they make up a large proportion of low-energy users’ bills.

In response, OFGEM said energy companies must provide tariffs on price closures from the winter of 2025.

One person will have regular fees and unit rates - now that's the case - another without regular fees, but with higher unit rates. However, these proposals have been criticized for being too complicated.

The Family Support Fund was launched in September 2021 to help disadvantaged customers, extending until March 2026.

The Warm Family Discount Program continues to offer discounts for qualified pensioners and low-income families.

The government’s direct fuel plan can help people pay their energy debt directly from welfare payments.

Additionally, if the supplier struggles with the bill, it is necessary to provide the customer with an affordable payment plan or repayment holiday.

Most suppliers also offer hard grants.

Changes in winter fuel payments mean that more than 10 million pensioners did not receive the money this winter.