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Britain’s energy price cap falls to £2,074 but households will see little relief

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Great Britain’s energy price cap has fallen to £2,074 a year, but the average household will still pay almost double the rate for their gas and electricity than before costs started to soar.Around 27m households can expect a modest drop in energy bills this summer after the regulator Ofgem lowered the cap on the typical annual dual-fuel tariff to reflect a steep drop in global energy prices over recent months.From July, when the change takes effect, households will see their average gas and electricity bill fall from the £2,500 a year level set by the government’s energy price guarantee.But households who struggled to pay their bills over the winter will feel little relief, because government top-ups worth £400 between October to March have come to an end.The average energy bill will remain almost double the level seen in October 2021 – when Russia began restricting supplies of gas to Europe in a move that sent wholesale prices soaring.

Before the energy crisis, the typical household paid £1,271 a year for gas and electricity.Households could still face dual-fuel bills above £2,074 if they use more than the typical amount of energy because Ofgem’s cap limits the rate energy suppliers can charge for each unit of gas and electricity – not the total bill.Fuel poverty campaigners have warned that most households are unlikely to feel any better off, and about 6.5 million households will remain in fuel poverty despite the lower rate.Energy experts believe households could face much higher than normal energy bills for years to come, as Russia’s war in Ukraine keeps prices on the global gas markets stubbornly high.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you

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