LONDON (AP) — Britain’s energy regulator said Thursday that the typical household energy bill will come down by around 400 pounds ($495) a year starting in July as global wholesale energy prices decline.

The drop brings some relief to millions of people and businesses that have struggled to cope with sharply higher electricity and gas bills over the past 18 months.

The Office of Gas and Electricity Markets, or Ofgem, said it was cutting its price cap — the maximum amount that gas suppliers can charge households per unit of energy — to 2,074 pounds ($2,567) a year starting July 1.

Since October, people have been partly shielded from gas price rises by the British government’s “energy price guarantee,” a subsidy that capped the typical household bill at 2,500 pounds a year.

Thursday’s announcement means that the average customer will pay 426 pounds less a year — or a fall of about 17%.

“While the price cap has dropped from its winter peak, it remains well above the pre-2021 average, and many people will still find such high bills difficult to pay,” the U.K. energy regulator said.

A day earlier, Britain’s national statistics agency said inflation dropped to 8.7% in the year to April, the first time it fell below double digits since August. But the drop wasn’t as big as anticipated, and food price inflation was near record highs.

“We’re on the right track, but there is no room for complacency,” Treasury chief Jeremy Hunt said Wednesday. ”It’s tough right now, but things will get better.”

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