Energy bills: Millions set to see 'big savings' as price cap lowered

13/08/2020 11:27
Aug - Energy bills Millions set to see big savings as price cap lowered.jpg

Energy bills will fall by an average of £84 in October for millions after the energy regulator lowered the price cap due to cheaper gas wholesale prices.

Ofgem has cut the default price cap to £1,042, its lowest level since the cap was introduced in January 2019.

The pre-payment meter cap will fall by an average of £95 to £1,070.

Ofgem said the changes would mean "big savings" for around 11 million households on default tariffs and four million on prepayment meters.

The regulator said the reduction was due to a sharp decrease in wholesale gas prices since the cap was last updated in February.

But it warned that the cap was likely to rise in April as wholesale prices have started to recover since hitting 20-year lows in the spring.

Read the full story here.

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