From April, average household energy bills are set to decrease by £238 annually, following new limits set by regulators on energy suppliers.
Ofgem, the regulatory authority, has announced a reduction in its price cap from the current £1,928 annually for an average dual-fuel household to £1,690 starting April 1.
This adjustment will lead to a 12% decrease in typical energy bills, bringing them to their lowest in two years.
In 2022, the cap experienced a significant rise, escalating from £1,215 in January to £1,877 in April, a consequence of the energy crisis sparked by Russia’s invasion of Ukraine.
By October of the same year, the cap further increased to £3,371, reaching a peak of £4,279 in January 2023. However, the impact of these hikes on households was mitigated by government subsidies, which limited bills to £2,500 per year.
Sharon Graham, the general secretary of Unite, has levelled strong criticism against energy companies for making excessive profits, even under the regulated price cap system. She stated:
Despite a minor reduction in Ofgem’s price cap, ordinary working individuals continue to face exorbitant energy costs, while those profiting from the energy sector are reaping substantial benefits.
She highlighted Centrica’s recent declaration of £2.8 billion in profits as an example of this issue. The company’s CEO even boasted about how last year’s significant profits were augmented by an additional charge that Ofgem incorporated into the price cap.
Graham emphasized that everyone, except those at the helm of energy companies, recognizes the flaws in the current system. She stressed the urgent need for public ownership of these utilities and called on politicians to make decisions that reflect this necessity.
