Ofgem drops energy price cap

Ofgem, the energy regulator, has announced the energy price cap will be reduced for the period 1 July to 30 September 2023.

From 1 July, the energy price cap will be set at an annual level of £2,074 for a dual fuel household paying by direct debit based on typical consumption. This reflects recent falls in wholesale energy prices.

The new price cap is a reduction on last quarter's cap and also a reduction in how much customers will have to pay.

The July price cap will be £2,074, a reduction of £1,206 from the April cap of £3,280.

This is the first time that prices will fall since the energy crisis began, and the cap is still higher than before the start of the crisis.

Ofgem CEO Jonathan Brearley said: “After a difficult winter for consumers it is encouraging to see signs that the market is stabilising and prices are moving in the right direction. People should start seeing cheaper energy bills from the start of July, and that is a welcome step towards lower costs.

“However, we know people are still finding it hard, the cost-of-living crisis continues and these bills will still be troubling many people up and down the country. Where people are struggling, we urge them to contact their supplier who will be able to offer a range of support, such as payment plans or access to hardship funds.

“In the medium term, we’re unlikely to see prices return to the levels we saw before the energy crisis, and therefore we believe that it is imperative that government, Ofgem, consumer groups and the wider industry work together to support vulnerable groups. In particular, we will continue to work with government to look at all options.” 

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