The average household energy bill will be slashed by £426 a year when Ofgem lowers its price cap in the coming weeks. The cap - which limits the maximum amount suppliers can charge customers for their energy usage - will be lowered to £2,074 annually from its current £3,280 per year.
The energy regulator said the £1,206 reduction to the cap reflected recent falls in wholesale energy prices. The new price cap will come into effect from Saturday, July 1.
The lower cap will replace the Government’s Energy Price Guarantee (EPG), which currently limits the typical household energy bill to around £2,500. READ MORE: Join the FREE Manchester Evening News WhatsApp community It means the average household will see their annual bill drop by £426.
The cut to the cap marks the first time consumers on default tariffs have seen their prices fall since the global gas crisis took hold more than 18 months ago, Ofgem said.Read more on manchestereveningnews.co.uk