New Energy Price Cap Announced

Fri,25 August 2023
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Regulator Ofgem has announced that it has slashed the price cap on energy bills after wholesale energy prices fell. The new energy cap, which is being put in place to limit how much suppliers can charge households for each unit of gas and electricity they use, will be in effect from October this year.

The energy price cap has dropped below £2,000 a year for the first time in nearly two years. This new cap will result in a typical energy bill being reduced by £151 meaning that an annual average bill for a typical household will be £1,923 a year, although bills will still be 60% higher than in winter 2021.

With regards to financial support from Government, the £400 energy payment given to all households last winter is not being repeated.

Ofgem chief executive, Jonathan Brearley, said: “It is welcome news that the price cap continues to fall, however, we know people are struggling with the wider cost of living challenges and I can’t offer any certainty that things will ease this winter.”

Dan White policy and campaigns officer at DR UK and one of the leads of the Disability Poverty Campaign Group (DPCG) said: "This positive announcement masks the stark reality for millions of Disabled housholds, who have experienced  enormous increases in energy costs and will continue to do so.

Following the scandal relating to the forced fitting of pre-payment meters earlier this year and the reduction of PPM charges, pre-payment customers will for the first time see their unit costs for energy fall by the same amount as others.   

There is still no sign of any targeted financial support for people on low incomes, promised by the Chancellor in November 2022. Neither is there any contribution towards the additional energy costs experienced by Disabled people with higher energy use due to health conditions and or the use of mobility and health related equipment.

DPCG will be asking Government to come forward with proposals to support Disabled people on low incomes and those with higher energy use.” 

If you are struggling to meet energy bills, contact your supplier as soon as you can. Under Ofgem rules, suppliers must work with you to agree on a payment plan you can afford.