Consumers in England, Wales and Scotland will pay less for their gas and electricity from this summer as the energy price cap has been cut.
Energy regulator Ofgem said that from 1 July, a typical household’s combined gas and electricity bill will be £2,074 a year. This is £426 a year less than currently.
At its peak, the price cap reached £4,279 and it currently stands at £3,280.
July also sees the end of the government’s Energy Price Guarantee, which has limited the typical bill to £2,500 since October 2022.
The reduction in the price cap reflects recent falls in wholesale energy prices. However, the new level is still higher than before the energy crisis.
Speaking to the BBC’s Today programme, Ofgem chief executive Jonathan Brearley said the regulator was “very hopeful” that energy firms would reintroduce competitive fixed-price deals, so that “customers will get a better deal than the price cap”.
In Northern Ireland, where utilities are regulated separately, bills will be held at £1,950 per year.
