Trump's advice to UK on energy costs - as price cap reduction announced

Donald Trump has issued advice on how UK energy bills could come down further, after households on the energy price cap were told they would see a 7% reduction from July.

The default cap - which is reviewed by industry regulator Ofgem every three months - will see a typical household using gas and electricity and paying by Direct Debit stump up an average annual £1,720. That is down from the current April-June figure of £1,849 and reflects a reduction in wholesale gas prices.

Money latest: How energy price cap dip will affect me The lower cap, however, will be £152 higher than the same three-month period last year. News of the looming reduction drew some surprise commentary.

Hours after the announcement, the US president said of the UK in a post on his Truth Social platform: "I strongly recommend to them... that in order to get their energy costs down, they stop with the costly and unsightly windmills, and incentivize modernised drilling in the North Sea, where large amounts of oil lay waiting to be taken.

"A century of drilling left, with Aberdeen as the hub. The old-fashioned tax system disincentivises drilling, rather than the opposite.

UK's energy costs would go way down, and fast!". He also called on the UK to "stop with the costly and unsightly windmills" - in reference to onshore and offshore wind farms.

The advice is unlikely to be heeded by the UK government, which has set a clear course to move the country away from the volatile natural gas market and towards renewable power provision. Ofgem's price cap cut does not affect the millions of households to have taken a time-limited fixed deal.

Nevertheless, it represents some relief for families grappling with the cost of living aftershock that saw many essential bills rise by well above the rate of inflation last month. Ofgem also confirmed further bill savings through a £19 average cut, from July, in standing charges for households paying by both direct debit and prepayment, following an operating cost and debt allowances review.

The price cap does not limit total bills because householders still pay for the amount of energy they consume. The watchdog's announcements were made just days after fresh forecasts suggested that bills linked to the cap could come down further from both October and January, given recent wholesale market price trends.

Industry data specialist Cornwall Insight estimated on Friday that the price cap was currently on course to rise only slightly in October - by less than £1 a month. Wholesale gas costs last winter had been relatively stable until a cold snap hit much of Europe in January and early February, driving up demand at a time of weaker stocks.

Other risk factors ahead include extended EU gas storage rules and global conflicts, not least the continuing Russia-Ukraine war that sparked the 2022 energy price spike and cost of living crisis in the first place. Tim Jarvis, director general of markets at Ofgem, said: "A fall in the price cap will be welcome news for consumers, and reflects a reduction in the international price of wholesale gas.

However, we're acutely aware that prices remain high, and some continue to struggle with the cost of energy. "The first thing I want to remind people is that you don't have to pay the price cap - there are better deals out there, so it's important to shop around, and talk to your existing supplier about the best deal they can offer you.

And changing your payment method to direct debit or smart pay as you go can save you up to £136." Read more:Economy must be 'strong enough' for U-turn on winter fuel payments Ofgem said that a minority of homes, 35%, were on a fixed rate deal. Price comparison sites lined up after the price cap announcement to urge households still on the default tariff to investigate a switch.

Tom Lyon, director at Compare the Market said: "If anyone is worried about potentially higher energy bills later this year, they could consider locking in a fixed rate deal now. "Fixed rate deals also protect you from price hikes if the oil and gas markets are volatile.

Beyond your energy bills, it's important to search and compare other household bills, such as your car insurance, credit cards, or broadband, to see if you can make savings.".