New Ofgem price cap will see energy bills drop by £122 from start of July

Ofgem has announced household energy bills will fall by 7.2 per cent from the start of July, but remain around 40 per cent higher than pre-gas crisis levels. The sector regulator confirmed on Friday morning that annual energy bills for millions of households on the standard tariff, with typical average usage, will drop from £1,690 to £1,568 from July 1 - a saving of £122 over the coming year.

On Wednesday, Ofgem chief executive Jonathan Brearley told the Energy Security and Net Zero Committee that prices "are still significantly higher than they were before, and when we look further out our best estimate is that prices are going to stay high and volatile over time". "Whatever colour the next government is, we'll be heading into a winter still heavily dependent on volatile gas markets, going backwards on our energy independence. The cost of living, driven in part by energy bills, and the UK's energy security may well be key election issues - so how the parties choose to tackle them will likely be in the spotlight."

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