How your energy bills will change as new price cap could save £12 in every £100
manchestereveningnews.co.ukHouseholds struggling with the high cost of living could get some much-needed breathing space from next month as the energy price cap shrinks, saving consumers around £12 in every £100 spent on electricity.
It comes as a typical household bill is set to fall from £1,928 to £1,690, a huge saving for households on certain tariffs. The energy price cap is not a hard limit on how much customers pay each month, but a cap on the price that energy companies can charge to use their service and per unit of energy used, with the £1690 total based on the average household's electricity usage.
But this can be higher or lower depending on usage. This is only the case for households on variable tariffs, which can rise or fall depending on economic factors.
Those on a fixed tariff, where you pay the same amount per unit of energy for the extent of the contract, will not immediately benefit from this fall in the energy price cap. READ MORE: Man who bought one-way ticket to Thailand vows never to return to 'unaffordable' UK To put this April's fall in the capped price of energy into context, from the first of the month the cost of boiling a 3kw electric kettle will drop from around 5.4p to 4.65p for households on variable tariffs.
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