Published on: 7 Aug 2019
Energy regulator Ofgem has said that energy bills will fall by approximately £75 per year for 11 million households. This change is down to Ofgem lowering the price cap on standard and default tariffs from £1,254 per year for a typical user to £1,179 per year.
The change will come into effect as of 1 October, and most suppliers are expected to price within a few pounds of the new limit, which should equal an average saving of £75 per year. Be aware that this isn’t the maximum you can be charged; the price cap sets a limit on the rates you pay for each unit of gas and electricity. If you use more, you pay more.
However, the change doesn’t mean you can ignore your rates; it can still work out far cheaper to shop around and switch providers to the one that offers the best deal for your energy usage.
Bear in mind that this new price cap is reviewed twice per year; once in April and October. The current limit is set to remain until 2020, after which Ofgem will advise on an annual basis whether it should continue up to 2023. If you really want to save pounds over the long run, consider these deadlines and don’t be afraid to switch any time you can get a better deal.
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