Starting in July, household energy bills in England, Scotland, and Wales will see an average reduction of 7% from the previous three months, following Ofgem’s announcement of its latest price cap.
This price cap includes a standing charge, which is a fixed fee that all households pay for energy delivery to their homes. For dual fuel customers, the standing charge will remain at £334, and for those who pay by standard credit, it will stay at £369, unchanged from the previous price cap.
Household energy bills are set to decrease by £122 annually as Rishi Sunak commits to simplifying the process for customers to secure the best deals during his election campaign.
Starting July 1, the Ofgem price cap will drop from £1,690 to £1,568 per year, marking the lowest energy bill levels since before the onset of the energy crisis triggered by Vladimir Putin’s invasion of Ukraine, which heavily impacted European economies.
Previously, during the winter of 2021 to 2022, the price cap was at £1,216 a year, before escalating energy costs prompted by the war led the government to cap bills at £2,500 annually at the height of the fuel crisis.
As part of his election strategy, the Prime Minister is focusing on reducing energy bills.
The Conservative Party plans to enhance the usability of price comparison websites and is considering a proposal for the regulator Ofgem to release league tables that detail the response times of energy firms to customer complaints.
