Households in England, Scotland and Wales will see lower energy bills this winter after the regulator cut the price cap for the last quarter of 2023.
The move by Ofgem takes the average bill for gas and electricity below £2,000 a year for the first time since April 2022.
Between 1 October and 31 December, the energy price cap will be set at an annual level of £1,923 for a dual-fuel household paying by direct debit based on typical consumption.
This is £151 lower than current rates and £577 down compared to last winter.
However, with costs for housing and food continuing to rise, customers are unlikely to feel much benefit from the reduction in energy bills.
Ofgem said the latest cut reflects further falls in wholesale energy prices as the market stabilises and suppliers return to a healthier financial position.
The new level is still much higher than it was before Russia’s invasion of Ukraine led to a global energy crisis. In the winter of 2021, the price cap stood at £1,277.
