Ofgem energy price cap: how is it changing – and will bills fall this winter?

Ofgem calculations assume households now use 7% less electricity and 4% less gas, having cut back consumption in the cost of living crisis. Photograph: Jacob King/PA

Sky-high bills have made the price cap set by the energy regulator Ofgem a key number for British households. The good news is that from Sunday the cost of the average annual dual-fuel bill in Britain will drop below £2,000 a year for the first time since April 2022 as a new, lower cap kicks in.

The bad news is there is no repeat of the £400 universal bill subsidy this year, and the End Fuel Poverty Coalition says the financial squeeze created by the ongoing cost of living crisis means “people will still feel the pain of high energy bills this winter”.