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Some UK consumers will see cheaper energy bills from July as the government reduces its energy price cap to 2074 Brtish pounds ($2560) from £2500.
Householders in the country have faced surging energy bills after a series of pressures on the energy grid, including the war resulting from Russia’s invasion of Ukraine, while battling with a cost-of-living crisis and inflation over 10%.
The reduced-price cap, along with a reduction in inflation to 8.7% announced on Wednesday, will provide some relief, but experts warned that the Government has also removed energy bill support paid to those on low incomes.
The new cap, which is on energy unit price and not on total bills, will be in place from July 1 until 30 September, according to a statement from UK energy regulator Ofgem.
MoneySavingExpert’s Martin Lewis welcomed the price cap reduction but said some people would still be paying more for their energy than during the winter months, the Guardian reported.
“This is because, apart from for those with high use, the drop in the rates doesn’t make up for the £66 per month state support people got until April – and most are on monthly direct debit, which means they pay the same in summer as winter.
“Overall, this still leaves people paying double or more what they did before the energy crisis hit in October 2021.”
Data from Ofgem shows that from July consumers will pay £0.30 per kilowatt hour (kWh) and £0.53 per day standing charge for electricity and £0.08 per kWh and £0.29 per day standing charge for gas. Gas is widely used to power cooking, water heating and central heating in many UK homes.
According to MoneySavingExpert data, this is down by about £0.03 per kWh and remaining the same for standing charges for electricity and down by £0.02 per kWh and remaining the same for standing charges for gas.
(Reporting by Imogen Lillywhite; editing by Brinda Darasha)
