Households have been urged to send meter readings to their energy supplier ahead of Ofgem’s lowered price cap coming into effect on July 1. The average household energy bill will fall by £426 a year from July after Ofgem dropped its price cap following tumbling wholesale prices.
The regulator announced it is cutting its price cap from £3,280 to £2,074 from July 1, marking the first time consumers on default tariffs have seen their prices fall since the global gas crisis took hold more than 18 months ago. Households have been partly shielded from the most recent rise in prices by the Government’s Energy Price Guarantee (EPG), which limited annual energy costs to £2,500 for the average household – subsidising Ofgem’s price cap.
Ofgem’s latest cut means its cap will again govern household bills, resulting in a reduction of £426 from £2,500 to £2,074 – a fall of about 17%. Households should submit meter readings before midnight on June 30 to ensure they are paying the lower prices as soon as they come into effect.
