Ofgem is set to announce a new price cap next month after dropping it to its lowest level in almost a year. Currently, the price cap is set every three months and decides the unit rate cost of energy based on what an average household will spend in a year.
The previous announcement saw the price cap drop to £2,074 from the £3,280 set in April. The previous drop meant that the government's Energy Price Guarantee (EPG) was no longer required as the price cap finally dropped below it.
Despite this, bills still remain staggeringly high compared to pre-Covid levels and current predictions don't forecast improvements anytime soon. Try MEN Premium for FREE by clicking here for no ads, fun puzzles and brilliant new features We've broken down everything you need to know about next month's Ofgem price cap announcement.
The energy regulator will announce its new price cap evaluation on August 25. The price cap it announces will cover energy bills for October up until December for household billpayers.
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