Energy bills will fall for some households from today thanks to a cut to the price cap.
The typical annual dual fuel bill is now £1,641, down from £1,758, an 11% fall year-on-year – but still £600 more than in the winter of 2020/21 before the invasion of Ukraine.
Set by Ofgem, the regulator, the cap is the typical sum most households pay for gas and electricity when paying by direct debit.
It sets the maximum amount suppliers can charge you for each unit of energy and the daily standing charge.
Your actual annual bill will be different depending on how much energy you use. The more gas and electricity you use, the more you pay.
Ofgem makes changes to four specific charges under the price cap…
What should you do now?
Which? energy editor Emily Seymour said the fall would bring much-needed relief for households and offered some advice on what you should do next.
“If you’re currently paying variable rates, it’s worth checking the market to see what fixed deals are available. Fixing could offer protection against future increases, but only if the price is right,” she said.
“Options have reduced in the last few weeks, but some energy companies are still offering fixes with prices around those of the January-March price cap.”
Forecasters expect the cap to rise by £288 to £1,929 in July as the impact of the Middle East conflict hits energy prices.
According to Uswitch, the cheapest fixed energy deal available is being offered by E.ON Next, with the average annual bill costing £1,730. It lasts 15 months and comes with a £50 per fuel exit fee.
If you’re worried about paying your energy bills, contact your supplier as soon as possible, as they are obliged to help you.
