Ofgem is lowering its energy price cap by 17 per cent from the current £3,280 per year to £2,074 for the average household in Scotland, England and Wales from July. The regulator announced its latest energy price cap on Thursday as campaigners warned consumers are likely to feel little relief with bills remaining well above pre-pandemic levels.
Consultancy firm Cornwall Insight said despite the drop, households should also expect their energy bills to remain stubbornly high through the coming winter, at almost double the rates paid in 2020, and remain above pre-pandemic levels for the rest of the decade. Following the announcement, Ofgem chief executive Jonathan Brearley said more focus will be needed for UK Government, the regulator and the industry to support the most vulnerable groups this winter.
The lower cap will replace the UK Government’s Energy Price Guarantee (EPG) from July 1, which currently limits the typical household energy bill to around £2,500. It means the average household on typical usage will see their annual bill drop by £426.
