Good news for UK households; energy bills fall by £426 a year
A difference to the energy price cap has come into action, lowering domestic gas and electricity bills – for UK households with a further, smaller fall anticipated this winter.
A family in England, Wales and Scotland using a specific amount of energy will now pay £2,074 a year, a decrease of £426 a year.
UK households to get relief from energy bills:
Critics at the consultancy Cornwall Insight offer the typical bill could drop to £2,000 a year this winter. However, that stays much higher than the pre-pandemic bar.
Charities and suppliers have cautioned that despite declining prices, there is still a chance that many people with stretched finances will need help to pay. The precise amount households pay will differ depending on the gas and electricity they use.
On Friday, the chief executive of British Gas owner Centrica, Chris O’Shea, said the “first act” of the energy problem was over, but risks stayed. Energy UK, which represents suppliers, said firms had employed hundreds of extra staff to ensure support is available.
Government approval, which limited bills to £2,500 in recent months, is no longer required. There are no plans for the £400 deal on all bills the government-financed last winter, although cost-of-living payments will continue to be made to those on low earnings and getting certain advantages.
Wholesale energy costs and, in turn, customers’ prices have increased over the last 18 months.
Irrespective of government intervention, the energy regulator Ofgem imposes a maximum cost that suppliers can charge clients per unit of gas and electricity. It applies to households on variable or default taxes in England, Wales and Scotland.
Under the current cap, which begins on Saturday and stays for three months, the electricity unit rate is 30p per kWh, with a fixed charge of 53p daily. The gas unit rate is 8p per kWh, and the fixed charge is 29p a day.
