A typical household’s energy bill will fall by £122 a year from July under the new price cap. The latest quarterly cap for England, Wales and Scotland means a household using a typical amount of gas and electricity will pay £1,568 a year. It means that bills will be the lowest for two years. The cap, set by the regulator Ofgem, limits the maximum price that can be charged for each unit of gas and electricity – not the total bill. If you use more energy, you will pay more.
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 at their lowest level since Russia invaded Ukraine in February 2022. However, bills remain well above pre-pandemic levels and are about £400 higher than three years ago.
An estimated £3bn debt to suppliers has been built up by consumers when prices were high. The fall in the energy price cap reduces bills slightly,” said Dame Clare Moriarty, chief executive of Citizens Advice. “But our data tells us millions have fallen into the red or are unable to cover their essential costs every month. Analysts at the consultancy Cornwall Insight have forecast that recent rising wholesale prices may mean energy bills rise again in the run-up to winter.
Debra Baxter has high energy use throughout the year, having to charge her wheelchair to get out and move around her home. The lower [prices] are still not enough to pay for my wheelchair to be charged every day,” she said. I’ve had to put my energy bill on my credit card and hopefully pay for it the following month when I have a bit more money.
With gas and electricity prices affecting so many lives, and touching so many parts of our economy, energy will be a key election battleground. As well as the prices people pay, there is a debate over energy security and the move towards net zero.
Energy Security and Net Zero Secretary, Claire Coutinho, said the system would be tightened up under the Conservatives to ensure greater competition to benefit consumers. Labour argued there was little substance to the plan, with leader Sir Keir Starmer saying the party would create a publicly-owned power company to invest in wind and solar projects.
Source: BBC
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