Ofgem reveals new energy price cap with bills set to fall - The Times
Ofgem reveals new energy price cap with bills set to fall
UK NEWS
There will be reductions from July 1, thanks to a fall in wholesale gas and electricity prices after the mild winter
Last year gas and power prices soared following Russia’s invasion of Ukraine, pushing the energy price cap for a typical household to more than £3,000 a year until the government intervened with “energy price guarantee”
PA
Energy bills will fall by £426 to an average of £2,074 a year for a typical household from July, Ofgem has announced.
Households have been paying record high prices since October — equivalent to £2,500 a year based on typical usage — under the government’s energy price guarantee.
The regulator confirmed today that the energy price cap would mean bills falling below this level from July 1, thanks to reductions in wholesale gas and electricity prices after the mild winter.
• What does the new energy price cap mean for my bills?
The reduction should offer some respite to households but experts warned that bills would still be significantly higher than pre-crisis levels of £1,000 to £1,200 a year and that millions would struggle to
Related Knowledge Center: ENERGY BASICS: energy efficiency
The energy price spikes of the 1970s drove consumers, businesses and government to calculate opportunities for energy efficiency — investments, practices, and regulations to avoid some of the energy costs associated with particular products or services. Those calculations ran counter to a lot of engrained practices, and the friction between business and government is a feature of energy and environment policy discussions. Now, energy efficiency decisions — whether involving building practices, appliance efficiency, or vehicle mileage and emissions standards — are a complex mix of government regulation and market behavior.