EDF Energy has issued a message to customers as households are set for a £129 boost from July. has confirmed that will fall by 7% from July as the , resulting in significant savings for millions. The sets the maximum rate per unit and standing charge that customers can be charged for their energy use in England, Scotland and Wales. The cap is reviewed and changed every three months, with new rates taking effect in January, April, July and October.

The amount rates are set at is largely determined by facing suppliers for providing energy. Ofgem said a recent fall in wholesale prices was the main reason for the overall reduction in July. The price cap went up by 6.4% in April to take the average bill for households on standard variable tariffs to £1,849 per year. But from July this figure will drop by 7% to £1,720 per year, giving households an annual saving of £129 on average.

It's important to note that the price cap only sets the maximum rate per unit and standing charge that customers can be charged by suppliers for their energy use, but not the total bill - so if your energy use is above the average you'll pay more, and if it's below you'll pay less.

However, not all households are subject to the price cap as it is only paid by those who aren't currently on a fixed tariff, so if you switch it's possible to undercut the price cap significantly.

In a message to customers, EDF said households may be "better off" moving to a fixed tariff ahead of the July price cap change even though prices are coming down, adding that those who switch to its Simply Fixed Direct May26 tariff can save an extra £77 per year on average compared to the July price cap (which is already £129 lower than the current price cap) for a total saving of £206 across a year on average.

The supplier said: "Energy costs are set to change starting 1 July 2025. The latest news on Ofgem's Price Cap is that energy prices will fall by 7% from 1 July. Despite this, you may still be better off fixing your energy prices to protect yourself from future price increases later in the year. This means the average household will pay about £1,720 a year.

"Switch to our Simply Fixed Direct May26 tariff and save an average of £77 a year. Enjoy the peace of mind of a fixed rate - with no exit fees, so you're free to move anytime if it's not right for you.

"The £77 saving is based on the new Ofgem Price Cap prices that change on 1 July 2025 and Ofgem's 'typical' consumption. 'Typical' yearly consumption is 2,700 kWh of electricity and 11,500 kWh of gas based on a national average of regional prices for a dual fuel customer with a standard electricity meter who pays by Direct Debit. Find out more about how Ofgem works out the."

EDF said the price cap applies to all EDF customers on a variable or fixed-term tracker tariff, which includes standard, prepayment, smart Pay As You Go, E7 and complex meters, and the change in price will be automatically applied from July 1.

The firm added: "The price cap will fall 7% from £1,849 to £1,720. The annual price is based on a typical dual-fuel household that pays by Direct Debit. If you're on one of our variable tariffs, your prices will change automatically on 1 July. You don't need to do anything or call us.

"Please do not change your Direct Debit payments, as we review them regularly to keep up with any changes in the price cap. Changing your payment before a review could result in debt.

"Prepayment customers should see the change in their electricity prices when they top up after 1 July. Gas prices could update on prepayment customers' meters any time from today (after a top-up), but they won't activate until 1 July 2025."