Ofgem has announced new, lower price cap rates from July 1. The cap, measured four times a year, decides the maximum amount of money energy suppliers can charge consumers per unit of energy used.
At the last count, back on April 1, the cap was set at £3,280 per year, though no one ended up paying that because of the UK government's energy price guarantee, introduced in October 2022. At the time, the price cap was set very high and energy bills were reaching unpayable highs for many.
The guarantee capped the maximum rate for an average household at £2,500. Ofgem's new unit rates mean its energy price cap falls below the energy price guarantee - at an average of £2,074 per household per year.
