UK winter energy bills to fall by £84 as regulator lowers price cap
British consumers will see lower energy bills this winter after the industry regulator cut its price cap to record lows as wholesale energy market prices plunged during the coronavirus pandemic.
Ofgem said it would reduce the cap on default dual-fuel energy tariffs for 11m households by £84, from an average of £1,126 a year to £1,042 from October.
Customers on pre-payment energy meters will see their bills fall by an average of £94 a year, to £1,070 a year.
Gas and electricity prices have slumped on the back of weak energy demand hammered by the crisis, leading to cheaper supplies for providers in the wholesale market.
"The Covid-19 crisis has depressed energy demand although wholesale gas prices have started to recover since hitting 20-year lows in the spring," the regulator said.
Ofgem also recommended the cap, introduced in 2019 and which is adjusted twice a year, should remain in place in 2021.