Household energy bills in the UK will fall from July after the energy regulator lowers its price cap from the current £3,280 per year to £2,074.
Ofgem said the £1,206 reduction to the cap—which will come into effect on July 1—reflects recent falls in wholesale energy prices.
The price cap has rocketed from £1,162 a year for a typical household in August 2021 to its current level, having briefly reached £4,279, with the COVID-19 pandemic and Russian President Vladimir Putin’s invasion of Ukraine both pushing up wholesale prices.
The lower cap will replace the government’s Energy Price Guarantee (EPG), which currently limits the typical household energy bill to around £2,500….