Martin Lewis has shared a new video to help more people understand how Ofgem’s new energy price cap will impact their bills from July 1. On Thursday, the energy regulator announced the price cap will drop by 17 per cent from £2,500 to £2,074 a year, which means households with typical, average usage on a standard tariff will see an annual saving of £426.
Martin explained in real-terms that means for every £100 households currently pay on gas and electricity, it will cost £83 from July. However, he also shared the “bad news” that the high daily standing charges will not go down, which means even if you cut your energy usage to the minimum over the summer months, it will still cost around £300 a year - just to be connected to your supplier.
The founder of MoneySavngExpert.com said: “Now the bad news is the high daily standing charge that you pay will remain unchanged after the 1st of July. It will continue to be an average of 53p a day for electricity, 29p a day for gas.”
