Energy bills predicted to fall from July by nearly £450

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Ofgem is poised to announce a cut in its price cap next week, according to an energy consultancy firm.

Direct debits are based on estimated annual energy use so your supplier may be able to cut these if the estimate is more than you are usingEnergy bills for a typical household are expected to fall by nearly £450 from July, according to new forecasts.

Ofgem's current cap for an average household is £3,280, but consumers aren't directly affected by it because the government's guarantee scheme has a lower threshold. That will change in July when the cap falls and the threshold for the guarantee rises to £3,000.Government support is thought to have cost the taxpayer around £29.4bn in total.

The price of wholesale energy increased as Covid restrictions were eased and then rocketed after Russia's invasion of Ukraine last year.Worried about energy bills? The BBC's Colletta Smith tells you - in a minute - about four discounts and payments that could help

 

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