Energy Bills To Fall By £426 Amid Ofgem Price Cap Cut

THE average household energy bill will fall by £426 a year from July, after Ofgem dropped its price cap following tumbling wholesale prices.

The regulator has announced it is cutting its price cap from £3,280 to £2,074 from July 1, marking the first time consumers on default tariffs have seen their prices fall since the global gas crisis took hold more than 18 months ago.

At its peak, the price cap reached £4,279 and, “while today’s level is lower than last quarter, it is still above the levels it was before the energy crisis took hold, meaning many households could still struggle to pay bills”, the regulator said.

Households have been partly shielded from the most recent rise in prices by the Government’s Energy Price Guarantee (EPG), which limited annual energy costs to £2,500 for the average household – subsidising Ofgem’s price cap.