Struggling Brits are being boosted today as the energy price cap falls by 7 per cent.
The typical household bill for those who have still not signed up to a fixed tariff will drop by £129 to £1,720 per year.
That is £660 – or 28 per cent – lower than at the height of the energy crisis at the start of 2023, when the government implemented the energy price guarantee.
However, the level is still £152 higher than the same period last year.
Ofgem’s cap sets the limit on how much firms can charge customers per unit of energy. It is reviewed every three months.
But it does not constrain total bills because the costs for households still depends on the amount they consume.
Ofgem ‘s cap sets the limit on how much firms can charge customers per unit of energy. It is reviewed every three months
While around 35 per cent of domestic customers are now signed up to a fixed deal that they have actively sought out – and which is not governed by the price cap – approximately 22million households in England, Wales, and Scotland are still on the energy price cap.
Those households were being urged to read their meter by the end of the month to avoid being charged the higher pre-July 1 rate on estimated bills.
Ofgem has also reminded households that they do not have to pay the price cap, saying ‘there are better deals out there’.
The fall in energy costs will come as a relief for households, who suffered through an ‘awful April’ of bill rises, including Ofgem’s last 6.4% price cap increase.
Under-pressure households have also been hit with the biggest increase to water bills since at least February 1988, alongside steep rises across bills for council tax, mobile and broadband tariffs, as well as road tax.
