Householders can save cash by sending meter readings to their energy provider ahead of the reduced price cap, set to come into force on July 1. It follows Ofgem's decision to drop the price cap in response to plummeting wholesale prices, resulting in an average annual decrease of £426 in household energy bills from July.
The energy regulator has declared that it will slash the price cap from £3,280 to £2,074, commencing July 1. This marks the first occasion since the global gas crisis gripped the market over 18 months ago that consumers on default tariffs will witness a decline in their prices.
The government's Energy Price Guarantee (EPG) has partially shielded households from recent price hikes by limiting the average annual energy costs to £2,500. This EPG subsidy has effectively supported Ofgem's price cap. Consequently, Ofgem's latest reduction will once again govern household bills, resulting in a drop from £2,500 to £2,074, equating to approximately a 17% decrease.
