When the Ofgem energy price cap announcement is next month and how bills will be affected
28.07.2023 - 12:23
/ manchestereveningnews.co.uk
Ofgem is set to announce a new price cap next month after dropping it to its lowest level in almost a year.
Currently, the price cap is set every three months and decides the unit rate cost of energy based on what an average household will spend in a year. The previous announcement saw the price cap drop to £2,074 from the £3,280 set in April.
The previous drop meant that the government's Energy Price Guarantee (EPG) was no longer required as the price cap finally dropped below it. Despite this, bills still remain staggeringly high compared to pre-Covid levels and current predictions don't forecast improvements anytime soon.
Try MEN Premium for FREE by clicking here for no ads, fun puzzles and brilliant new features
We've broken down everything you need to know about next month's Ofgem price cap announcement.
The energy regulator will announce its new price cap evaluation on August 25. The price cap it announces will cover energy bills for October up until December for household billpayers.
Current popular predictions state there will be "relatively small fluctuations" in the price cap through to September next year. According to Cornwall Insight, the price cap could fall to £1,860 for a typical household from October this year.
Following this small dip, the cap is then projected to rise to around £1,960 in January before seeing further decreases in March and July next year. Emily Seymour, energy editor at Which?, said: “These predictions that the price cap will remain relatively stable for the next year will give consumers some certainty over their energy bills for the foreseeable future."
Join our WhatsApp Top Stories and Breaking News group by clicking this link
However, the Ofgem price cap is not a maximum