Household energy bills about to fall to lowest point in two years

The average household energy bill is to fall to its lowest point in two years from next month after Ofgem lowered its price cap in response to wholesale prices.

Suppliers who have not received meter readings base their bills on estimated usage, meaning households could be overpaying, while others may not be paying enough. However, the regulator has also allowed a temporary additional payment of £28 a year, or £2.33 a month, to make sure suppliers have enough funds to support customers who are struggling.

Ofgem said the solution must be funded by bill-payers rather than taxpayers, to maintain fairness, meaning prepayment customers will save around £49 per year while direct debit customers will pay £10 more each year. This means that for the average direct debit customer, a total energy bill’s standing charges will rise from £303 a year to £334.

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