On paper, a £426 reduction on your energy bills sound like a step in the right direction after nearly two years of high costs to keep your home running. But how much will the new Ofgem price cap announced this week REALLY cut your energy bills by?
Based on the difference between the current Energy Price Guarantee (EPG) of £2,500 and the new price cap of £2,074 for direct debit customers, the average household should save £426 a year, or around £36 per month, from July.
But the reality is that most families will save just a few pounds a month because the £400 Energy Bills Support Scheme (EBSS), which subsidised bills from October-March, has come to an end, with no sign of a repeat for winter 2023. The EBBS meant that the average household paid £2,100 (£2,500 EPG - £400 EBSS) - just £26 a year more than the new price cap.
