Ofgem has revealed that household energy bills will fall from July by 7% and a typical bill will drop by around £129 to £1,720 a year when the new price cap starts.
Tim Jarvis, director general of markets at Ofgem, said: “A fall in the price cap will be welcome news for consumers, and reflects a reduction in the international price of wholesale gas. However, we’re acutely aware that prices remain high, and some continue to struggle with the cost of energy.
“The first thing I want to remind people is that you don’t have to pay the price cap – there are better deals out there so it’s important to shop around and talk to your existing supplier about the best deal they can offer you. And changing your payment method to direct debit or smart pay as you go can save you up to £136.
“In the longer term, we need an energy system where prices are insulated from the volatile international gas market, and which ensures more stable prices and energy security. And we’re working closely with government to get the investment we need to reach our clean power and net zero targets as quickly as possible.
“We’re also doing everything we can to support consumers today and pushing ahead with more changes to help consumers. This includes working on ways to support those trapped in energy debt and bringing in reforms to standing charge tariffs for this winter.”
Citizens Advice chief executive Clare Moriarty said: “This drop in energy prices will ease the burden of high bills for some households. But the Government must not lose perspective: bills will still be 52% higher than before the energy crisis and nearly seven million people live in households that have fallen behind on bills.
“Today’s announcement will be cold comfort to the millions paying off a mountain of debt on top of their monthly costs.
“The Government has said it hopes to provide more support to pensioners this winter but we know that people with children are often struggling most of all with energy. It must provide more targeted energy bill support to those hardest hit, and upgrade five million homes with money-saving energy efficiency measures.”
