Households energy bills to drop from April after Ofgem energy price cap is lowered

Household energy bills will fall in April after energy regulator Ofgem lowered the energy price cap by 7 per cent.

The cut coincides with Chancellor Rachel Reeves’ promise to cut £150 from the average household bill.

Ofgem announced on Wednesday morning that it had cut the energy price cap for a typical dual-fuel home by £117, to £1,641 per year.

The price cap, first introduced by the regulator in 2019, limits the maximum amount energy suppliers can charge for each unit of gas or electricity used.

It also sets the maximum daily fixed charge (the cost of connecting your home to the grid).

The price cap figure of £1,641 provided by Ofgem shows how much a household using gas and electricity and paying via direct debit could expect to pay if energy consumption was normal.

It’s important to note that this doesn’t limit a home’s total bills, because people still pay for the amount of energy they use; that is, they will pay more if it is above average and less if it is below it.

In November, Ms Reeves pledged to cut £150 from the average household bill from April.

Speaking ahead of the energy cap price announcement, Which? Energy editor Emily Seymour said: “Households can expect a significant cut to their energy bills in April, which will bring relief to millions of people struggling with cost of living pressure.

“The majority of this change is expected to apply to your electricity price per unit, so your exact savings will depend on your usage – watch for communications from your energy provider in the coming weeks to see how this will affect your bills.”

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