Energy bills to fall by £122 from 1st July as Price Cap is announced

More than 29 million households across England, Wales, and Scotland are set to see a decrease in their energy bills by £122, starting in July, after to the new price cap was announced by Ofgem, the energy regulator. 

This adjustment will see the average annual energy bill for a typical household fall by 7% to £1,568, down from the current £1,690.

Although this offers some respite, it’s essential to note that current bills are still significantly higher than pre-pandemic levels.

The price cap, set by Ofgem, limits the maximum price that suppliers can charge per unit of energy. However, it does not cap the total bill, meaning that households consuming more energy will still face higher costs. 

While the price drop is positive news, challenges remain. Ofgem is considering methodology reforms to the energy price cap that could impact future bills. Particularly standing charges, the fixed daily fees for maintaining a connection to the energy supply.

A standing charge reduction might benefit low-energy users, but could lead to higher unit prices, affecting those in less energy-efficient homes.

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