Ofgem has announced it is lowering its energy price cap - the amount suppliers are able to charge - from the current £4,279 per year to £3,280 for the average household, effective from April 1. The regulator said the reduction of almost £1,000 reflects recent falls in global wholesale energy prices.
However, Martin Lewis is warning millions of households are facing an increase of 20 per cent on their energy bills, despite Ofgem’s reduction. The £3,280 figure indicates how much consumers on their energy suppliers' basic tariff would pay if the UK Government's Energy Price Guarantee (EPG) was not in place.
But customers will pay about 20 per cent more on their bills - approximately £500 - as the UK Government's EPG becomes less generous from the beginning of April, leading to an average bill of £3,000. The consumer champion explained to GMB viewers: “You’re going to pay 20 per cent more in England, Scotland and Wales.”
