Ofgem price cap falls to £1,923 a year - what this means for your energy bill

manchestereveningnews.co.uk:

Energy bills are set to fall for millions of households in a matter of months after Ofgem confirmed its new price cap. The price cap is falling by £151 a year from October, from £2,074 a year to £1,923.

This applies to a typical dual fuel household paying by direct debit. While this will be good news for families that have faced rocketing gas and electricity costs after the Covid pandemic and following the Russian invasion of Ukraine, energy bills are still much higher than they used to be.

The Ofgem price cap stood at £1,277 a year in October 2021 and £1,042 a year in October 2020, reports the Mirror. To make matters worse, households will not be receiving the £400 energy bill discount this winter from the Government, which was issued in £66 or £67 monthly instalments from October 2022 until March this year. Try MEN Premium for FREE by clicking here for no ads, fun puzzles and brilliant new features. Jonathan Brearley, Ofgem CEO, said: “It is welcome news that the price cap continues to fall, however, we know people are struggling with the wider cost of living challenges and I can’t offer any certainty that things will ease this winter.“ Energy Security Secretary Grant Shapps said: “It’s encouraging families will see their energy bills continue to fall from October, down £580 on average since their peak – another milestone as we deliver on our promise to halve inflation.

We acted swiftly when prices soared because of Putin’s abhorrent attack on Ukraine, spending billions and covering around half a typical household’s bill.“ Around 29 million people are on the price cap - but is important to remember there isn’t actually a total cap on what you can pay for energy.