Money blog: Energy bills to fall by more than £100 as new price cap announced

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The new energy price cap means average bills will be more than £500 cheaper than last summer. Read about this and the rest of today's consumer and personal finance news - and leave a comment - in the Money blog below.

As we've been reporting, the energy price cap has been set at £1,568 a year for a typical dual-fuel consumer and will come into force from July. The new cap represents a 7% decrease from the current rate of £1,690. It has played a significant role in reducing the UK's inflation rate to a near three-year low of 2.3%.

Its forecasts show a typical bill could increase to £1,762 - even higher than the current rate - from October and remain around this level from January 2025.The prediction is due to an uptick in the wholesale market.'It is clear the cap in its current form is not going to bring down bills to pre-crisis levels,' Dr Craig Lowrey, principal consultant at Cornwall Insight, said.

 

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