Energy bills drop, but concerns remain.

Energy bills are finally starting to come down. Ofgem has reduced the price cap, which means around 21 million households across England, Scotland and Wales will see a drop in costs. For the average dual-fuel household, that’s a 7% reduction — about £11 a month — bringing annual bills to around £1,720.

On the surface, that’s good news. But there are still reasons to be cautious. With colder, darker months ahead, usage will naturally rise and push bills higher again. And while fixed tariffs can offer payment certainty — potentially saving around £200 a year — they only secure the unit rate. How much you use still makes all the difference.

For businesses, this matters just as much as it does for households. Energy costs feed directly into overheads, cashflow and profitability. If you’re budgeting for the months ahead, it’s worth reviewing whether fixed rates, efficiency measures or even just tighter monitoring of usage could make a difference to your bottom line.

Global uncertainty is keeping wholesale prices volatile, and although another small fall is forecast in October, there are no guarantees. My advice? Treat any savings now as a chance to plan ahead rather than assuming the pressure is over.

If you’d like to chat about how changing costs might affect your cashflow or your pricing strategy, I’m here to help.