Costs reduce

Energy bills fall to two-year low under new price cap

Heating themostat
Households will see a further cut in their energy bills

Energy bills will fall by an average of £122 in July to a two-year low following the regulator Ofgem’s new price cap.

It means a household using a typical amount of gas and electricity will pay £1,568 a year, in line with earlier forecasts.

The cap sets a limit on the maximum price that can be charged for each unit of gas and electricity – not the total bill.

It affects the gas and electricity bills of 28 million households, but does not impact customers in Northern Ireland, where the sector is regulated differently but where prices are also falling.

Energy prices are now at their lowest level since Russia’s invasion of Ukraine in February 2022. However, bills remain well above pre-pandemic levels. A typical annual bill is about £500 lower than last summer, but about £400 higher than three years ago.

The vast majority of households pay by direct debit, and their payments are smoothed out over the year. They can expect more information from their supplier in the coming days about any price changes.

Suppliers will judge the level of direct debit on previous, and future predicted, usage. Customers can challenge any, or no, change by talking initially to their energy provider.

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