Average energy bills set to fall as Ofgem announces new price cap
24.05.2024 - 07:17
/ manchestereveningnews.co.uk
Brits should soon see their energy bills fall after Ofgem announced its latest price cap - but there is a warning the news is not 'a sign of stability'. The energy regulator has lowered its price cap in response to wholesale energy prices.
In an announcement made this morning (May 24), Ofgem confirmed the average household energy bill will fall by seven per cent from July. The price cap will fall from £1,690 for a typical dual fuel household in England, Scotland and Wales, to £1,568.
That represents a drop of £122 over the course of a year - and is around £500 less than the cap in July last year, when it stood at £2,074. However, the cap is expected to rise again later this year, and experts say energy prices will remain higher than in previous years.
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Citizens Advice chief executive Dame Clare Moriarty said: “Today’s news will give small comfort to households still facing cost-of-living pressures. The fall in the energy price cap reduces bills slightly, but our data tells us millions have fallen into the red or are unable to cover their essential costs every month.
"People cannot rely on lower energy prices alone to escape the financial issues they’ve been experiencing. That’s why we need better targeted energy bill support for those really struggling to keep the lights on or cook a hot meal.”
Ofgem said the average household on a prepayment meter for dual fuel would pay £1,522 over the course of a year, while those paying by standard credit would pay £1,668. The price cap 'assumes' a standing charge - the flat amount all households pay to have energy delivered to their homes - of £334 for a dual fuel customer and