Ofgem lowers energy price cap from 1 July – London Business News | Londonlovesbusiness.com

Ofgem has lowered the price cap as wholesale prices have come down, the average household energy bill is set to fall by 7% from 1 July.

The price cap will fall from £1.690 to £1,568 for the average dual fuel household in the UK.

Citizens Advice chief executive Dame Clare Moriarty said: “Today’s news will give small comfort to households still facing cost-of-living pressures.

“The fall in the energy price cap reduces bills slightly, but our data tells us millions have fallen into the red or are unable to cover their essential costs every month.

“People cannot rely on lower energy prices alone to escape the financial issues they’ve been experiencing.

“That’s why we need better targeted energy bill support for those really struggling to keep the lights on or cook a hot meal.”

Ofgem chief executive Jonathan Brearley told the Energy Security and Net Zero Committee that prices “are still significantly higher than they were before, and when we look further out our best estimate is that prices are going to stay high and volatile over time.”

Dhara Vyas, deputy chief of Energy UK, which represents suppliers, said, “Another fall in the price cap is good news for customers who were facing bills that were hundreds of pounds higher this time last year.

“However, as Ofgem underlined earlier this week, it’s only a return to relative normality. Energy bills are still larger than they were just over two years ago and prices will remain high and unstable for some time to come.

“Customer debt is at record levels and likely to increase still further, so despite suppliers’ ongoing efforts to support households, the next Government must work with the industry and Ofgem to put in place a long-term solution that provides targeted help for those who need it and ensures that bills are affordable for everyone.”