Martin Lewis has welcomed Ofgem’s announcement people will be paying less for their energy bills, but warned customers will still be paying double what they were before the crisis.
Millions of Brits will see their bills drop by over £400 as it was announced its price cap will drop to £2,074 for 27 million households on direct debit default tariffs from the current £3,280.
It is a huge reduction from the £4,279 set for January to March and the first time energy bills have dropped in two years, giving welcome relief to Brits.
Ofgem's latest cut means it will result in a reduction of £426 from £2,500 to £2,074 - a fall of about 17%.
This price cap announcement also brings the end of the Government’s Energy Price Guarantee which set the typical yearly energy bill at £2,500.
However the Money Saving Expert warned most will still be paying more for their energy than during the winter.
He said: “This will be a relief for many, yet most will be paying more for their energy than during the winter.
“This is because, apart from those with high use, the drop in the rates doesn’t make up for the £66 per month state support people for until April.
“Most are on monthly direct debits which means they pay the same in summer as winter,
“Overall this still leaves people paying double or more what they did before the energy crisis hit in October 2021.
“The fact the state is paying far less than planned to support people’s bills means there is some wriggle room here for targeted support for another hard winter coming for those who are just above the benefits threshold.
“Though I’m not holding out much hope that it’ll happen.”
He also urged people on high fixed rate deals to consider ditching their companies, even if they have to pay exit fees.
Ofgem chief executive Jonathan Brearley said more focus will be needed for government, the regulator and the industry to support the most vulnerable groups this winter.
He added: "After a difficult winter for consumers it is encouraging to see signs that the market is stabilising and prices are moving in the right direction.
“People should start seeing cheaper energy bills from the start of July, and that is a welcome step towards lower costs.
"However, we know people are still finding it hard, the cost-of-living crisis continues and these bills will still be troubling many people up and down the country.
“Where people are struggling, we urge them to contact their supplier who will be able to offer a range of support, such as payment plans or access to hardship funds.
"In the medium term, we're unlikely to see prices return to the levels we saw before the energy crisis, and therefore we believe that it is imperative that government, Ofgem, consumer groups and the wider industry work together to support vulnerable groups. In particular, we will continue to work with government to look at all options."
