The latest energy bill update is set to give a boost to millions of households who will receive an extra £122 in their bank account
Energy Bills to Fall Again From July
Households are about to see a significant boost with confirmation that energy bills will fall again from July. Energy price caps are set to fall from £1,690 to £1,568.
This means an average annual saving of £122 for households and follows an earlier reduction in the price cap this year. For many families, who have been burdened by exorbitant energy bills in recent years, this news is a welcome respite.
Savings Schedule and Their Impact
The signs are promising that tariffs are beginning to return to more normal levels. When customers benefit from these savings will depend on their payment methods.
For those who pay by direct debit, they may not see an immediate reduction in their monthly payments, but they will build up a credit on their account as a result of their reduced energy consumption. However, experts warn that despite this reduction, bills remain excessively high and could rise again before the end of the year.
Alastair Douglas, CEO of TotallyMoney, said: "Any reduction in the energy price cap is good news. The annual reduction of £122 will be a relief for the millions of households struggling to keep up. Nevertheless, it is troubling - and somewhat confusing - that prices are still so much higher than pre-crisis levels, and that a further rise is expected before the end of the year.
"With just six suppliers now controlling 70% of the market, there is insufficient competition. Before the crisis, more than 50 energy companies were competing for new customers, with many offers below the ceiling.
"Now that some offers are re-emerging on the market, there are still potential savings to be made. However, it's essential to do your sums and look carefully at the small print. The energy price cap is based on estimates, so individual consumption can vary, and early exit charges can be as high as £300.
"When smart meters were introduced, they were supposed to benefit consumers, not hinder them. Unfortunately, 10% of these meters are faulty and, given the slow response from energy companies, millions of households could end up with large bills through no fault of their own."
In all, if the reduction in the energy price cap brings some comfort, constant vigilance and careful management are essential to navigate the complexities of energy billing and market dynamics.