The latest energy price cap forecasts for later this year have been released, showing a drop in the average UK gas and electric bill of around £130 this summer. But the consumer finance guru Martin Lewis says the announcement is still 'bad news'.
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 April 1 £1690 total based on the average household's electricity usage. But this can be higher or lower depending on usage.
This equates to paying £84.80 on January 1 2025 for what you would have paid £100 for now. Martin added: "Overall over the next year this means you'd pay on average 15% less than the current price cap over the next year once you factor in seasonal usage.
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