Gas and electricity bills will fall for about 15m households this summer after the energy regulator, Ofgem, reduced its price cap on standard bills in response to falling global energy markets.
The price of the average dual-fuel energy bill will fall by £17, from £1,179 to £1,162, for 11m households that use a standard variable energy tariff to buy their energy. There will be a similar cut for the 4m homes that have a prepay meter, with the average price of gas and electricity to fall from £1,217 to £1,200.
Ofgem has lowered the cap, which is designed to guarantee a fair price for energy customers, in line with the falling price of gas and power on the wholesale energy markets. It will take effect from 1 April and remain in place for six months.
The energy minister Kwasi Kwarteng said: “The price cap is saving the average bill payer between £75 and £100 per year, helping everyone get through the cold weather without worrying about costs.”
Ofgem’s new chief executive, Jonathan Brearley, said the cap had saved households about £1bn since it was introduced at the beginning of last year but energy billpayers could make bigger savings by “shopping around for a better deal”.
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20 August 2020