Why Ofgem energy price cap has decreased and what it means for gas and electric bills

What is the change mean?

The July to September 2023 price cap level meant the average household on a standard variable tariff was paying £2,074 a year. The energy regulator said it was cutting the price that a supplier could charge for gas from 6.9p per kilowatt hour today to 6.89p from 1 October.This means that the average household bill will end up at around £1,923 per year, according to the regulator’s calculations. Customers on prepayment meters will pay £1,949 on average.This is based on an estimate that the average household uses 2,900 kWh of electricity and 12,000 kWh of gas.

Ofgem chief executive, Jonathan Brearley, said: “It is welcome news that the price cap continues to fall, however, we know people are struggling with the wider cost of living challenges and I can’t offer any certainty that things will ease this winter.”

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Ofgem price cap change and what this means for your energy billThere's good news and bad news
Source: EchoWhatsOn - 🏆 74. / 59 Read more »

Ofgem slashes energy price cap to £1,923The price cap will reduce from October 1.
Source: Observer_Owl - 🏆 18. / 72 Read more »

Ofgem confirms new price cap will drop to £1,923 a year from start of OctoberThe current energy price cap of £2,074 per year will be lowered to £1,923 from October 1.
Source: Daily_Record - 🏆 9. / 89 Read more »

Ofgem slashes energy price cap 'but millions will still struggle to pay bills'The National Pensioners Convention warned that it will 'not avert another winter of widespread misery'
Source: LiveLancs - 🏆 10. / 87 Read more »