The amount energy suppliers are able to charge households has been lowered by Ofgem in its latest announcement.
On Monday (February 27) the regulator confirmed the price cap, effective from April 1, will drop from the current £4,279 per year to £3,280 for the average household. Ofgem said the reduction of almost £1,000 reflects recent falls in wholesale energy prices.
However, domestic energy bills are still set to rise by an average of £500 a year despite the reduction as the Government’s support for households becomes more limited. The £3,280 figure indicates how much consumers on their energy suppliers’ basic tariff would pay if the Government’s Energy Price Guarantee (EPG) was not in place.
