Millions of British households will see cheaper energy bills from July after regulator Ofgem slashed its cap on prices following a slump in wholesale energy costs.
Energy prices hit record highs in Britain and Europe last year after Russia’s invasion of Ukraine led to reduced gas supply from Russia to Europe.
The new price cap of 2,074 pounds ($2,618) a year for average dual-fuel use marks a near 40% fall compared with the previous cap level.
However the price drop for most British households will be around 17% as they have been protected by a government guarantee since October to keep the average annual cost of energy at 2,500 pounds a year to help with a cost-of-living squeeze.
($1 = 0.7923 pounds) (Reporting by Susanna Twidale in London and Yadarisa Shabong in Bengaluru; Editing by Arun Koyyur and Jan Harvey)