Bills are much lower that at the start of the energy crisis in September 2021, when the cap was raised to £1,277 annually Energy market research and analysts, Cornwall Insight predicts the energy price cap will fall by another 7 per cent on 1 July when the latest change comes into takes effect – meaning average annual bills for typical household use, which are currently £1,690 a year, will drop to £1,574 a year – down from £2,074 last July.
Mr Lowrey warned that “bill levels which are hundreds of pounds above pre-crisis levelsunderscores the ongoing challenges faced by households”, adding: “Of course, we must recognise lower prices don’t erase all the problems.”Ofgem changes the price cap every three months based on several factors, the most important of which is the wholesale price of energy.
Ofgem is currently reviewing the price cap and looking at how it is calculated and will officially announce the cap for July to September on 24 May. “Reducing standing charges, while seemingly beneficial for low-energy users, could lead to higher unit prices,” he said.