Typical energy bill to fall under new price cap
25 May 2023
Energy bills will fall to £2,074 a year for the typical household from July under the new price cap announced by regulator Ofgem.
The average household will still pay almost double the rate for their gas and electricity than before costs started to soar.
Around 27 million households can expect a modest drop in energy bills this summer after Ofgem lowered the cap on the typical annual dual-fuel tariff to reflect a steep drop in global energy prices over recent months.
From July when the change takes effect, households will see their average gas and electricity bill fall from the £2,500 a year level set by the government's Energy Price Guarantee (EPG).
Jonathan Brearley, CEO of Ofgem, said: 'After a difficult winter for consumers it is encouraging to see signs that the market is stabilising and prices are moving in the right direction.
'We know people are still finding it hard, the cost-of-living crisis continues and these bills will still be troubling many people up and down the country.
'In the medium term, we're unlikely to see prices return to the levels we saw before the energy crisis, and therefore we believe that it is imperative that government, Ofgem, consumer groups and the wider industry work together to support vulnerable groups.'