The average household energy bill will fall to its lowest point in two years from Monday 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.
Campaigners warned that while the costs that households pay for every unit of energy they use will decrease “slightly”, they were still almost double what they were in 2021. It is also important to note that the price cap is not a limit on the overall amount people will pay for their energy, but instead caps the amount that they pay per kilowatt hour, or unit, of gas and electricity.
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Average household energy costs fall to lowest point in two yearsOfgem’s price cap has dropped by 12.3 from the previous £1,928 for a typical dual fuel household in England, Scotland and Wales, to £1,690.
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