Customers of major energy suppliers such as British Gas, E.ON, EDF and Octopus Energy are in for a pleasant surprise today, with a £360 increase announced for their bills.
Energy Customers Set to Save £360 as Major Suppliers Announce Price Cut
The good news comes as Ofgem has informed energy companies of a price cap set for 1 July 2024. The price cap provides for a mandatory 7% reduction in the average household bill, which will benefit all consumers.
Even if this reduction applies specifically to customers on variable tariffs, it should be noted that 90% of households are currently on variable thresholds, which means that the majority of them will be able to benefit from the financial relief in July.
Ofgem has revealed that, for the period from 1 July to 30 September 2024, the energy price cap is £1,568 a year for a typical household using both electricity and gas and paying by direct debit.
This represents a reduction of £122 from the previous cap for the period April to June 2024, which stood at £1,690.
In terms of unit rates, electricity will be charged at 22.36 pence per unit, while gas will be charged at 5.48 pence per unit. In addition, standing charges are set at 60.10 pence per day for electricity and 31.41 pence per day for gas during this period.
The 7% reduction translates into £122 less money on bills, and combined with a £238 reduction applied in April, households will enjoy a total saving of £360 as a result of both price cap adjustments.
However, even with such positive developments, it is important to be vigilant, as the forecasts are suggesting a possible rise in prices in September.
Consequently, it may be prudent for consumers to explore fixed tariffs offering rates significantly lower than the current price cap projections, given that the current price cap is expected to be the lowest for the foreseeable future.