£238 boost for British Gas, EDF, EOn and Octopus Energy customers from Monday

From Monday, customers of British Gas, EDF, E. On, Shell, Octopus and other energy companies will receive an average boost of £238 to their accounts.

However, there is some good news on the horizon. From Monday, April 1, Ofgem, the energy price regulator, has announced a reduction in energy bills for all major suppliers due to a decrease in the price cap.The price cap is the maximum amount that energy firms can charge customers. They are not required to reach it and can charge less , but they cannot legally charge more for a standard tariff, reports YorkshireLive.

This means people can save £238 on average on their energy bills. If you use more energy, like double the average amount, your bill could be £3,380 a year. But with the new price cap, you'll still save about £476. Unfortunately, the standing charge is still going up, which is said to 'punish' low energy users because the part of your bill you cannot control through lowering your usage is still increasing. The standing charge is said to pay for the costs incurred from suppliers which went bust.

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