Households in Britain will soon potentially be saving over £200 on those sky-high energy bills.
Gas and electricity charges are set to fall by 12.3 per cent in April to their lowest level since Russia’s full-scale invasion of Ukraine two years ago.
Regulator Ofgem announced the cap for the average annual household dual fuel bill will be £1,690 - that’s a saving of £238 over one year, which applies to the April to June quarter.
Ofgem’s move was welcomed by consumer groups and will see the lowest bills for households in two years, but it’s still 50 per cent higher than three years ago
The cap reduction follows falls in wholesale gas prices over recent months and will help around 29 million customers on standard variable tariffs.
It comes after Ofgem reduced the price cap from £1,928 in the current quarter by 12.3 per cent.
The cuts focus on the maximum price that energy firms are allowed to charge per unit of gas and electricity.
However, daily standing electricity charges covering supply connection are increasing by £28 annually.
At the same time, while it doesn’t feel like it for many, a milder winter and cheaper petrol costs have helped to somewhat relieve financial strain on households.
The new rate will take effect in April and be changed once more in June and July.
However, customers’ payments are not limited by the cap, and instead those who consume more energy pay more.
Plus, how City economists predict cutting the energy tariff cap will help inflation drop to as low as two per cent in April.
Evening Standard business editor Jonathan Prynn has the latest in this episode of The Standard podcast.
Listen above, or wherever you find your podcasts.
