The energy price cap may have fallen to £2,074 a year, but the reality is that the drop will make very little difference to most households struggling to pay their gas and electricity bills.
Although the cap, which was set by Ofgem on Thursday May 25, has dropped a headline-grabbing £1,206 from the current cap of £3,280, the EPG limits the average household bill to £2,500. And households will still face sky-high heating costs this winter because the Government's Energy Price Guarantee (EPG) and Energy Bills Support Scheme (EBSS) have come to an end.
The EPG coupled with the £400 EBSS paid to most households last winter meant that the average family paid £2,100 for their annual bills. So the new price cap at £2,074 a year will only save the average family £26 per year. This means that the average household will continue to pay almost double the rate for their gas and electricity than before costs started to soar in late 2021. Before then, the typical household paid £1,271 a year.
