Switch on to cheaper energy bills this month as price cap cut

 In News

Among all the gloom there is one piece of good news for householders – many will get cheaper energy bills from next week.

The regulator, Ofgem, has reduced the default price cap and pre-payment meter cap by £17 over the next six months, a move which will help around 15 million households.

This cap was introduced to protect customers on poor value default or standard variable tariffs. 

It will mean that the default price cap, which protects about 11 million households, is set to fall from £1,179 to £1,162 for this April-September period.

And the pre-payment meter cap, which protects a further 4 million households, will fall from £1,217 to £1,200 per year for the same six months.

Wholesale gas and electricity prices are at their lowest levels for about 10 years, because of record amounts of liquefied natural gas and healthy gas stocks. There had been speculation that Ofgem would make deeper cuts of between £20-£60.

However, Midlands green energy expert Ron Fox said even this was welcome news for households. But they could get even lower bills by shopping around for a better deal and switching suppliers.

He said the default price cap was designed to both protect consumers who are overpaying for their energy and don’t switch, as well as encouraging suppliers to become more efficient and to pass on the savings. 

In its first year since the energy cap was introduced on January 1, 2019, it is estimated to have saved consumers in total £1bn on their energy bills and switching rates have hit record levels. 

Ron, of Noreus Ltd on the University of Keele Science and Innovation Park, also pointed out that research by the consumer group Which? showed the number of energy deals at under £1,000 a year had surged during the last 12 months with 78 deals available compared to just 12 when the price cap began.

Over the summer Ofgem will review the system and report to the government on whether the cap should be lifted or extended and if more action is needed to get householders on to the lowest rates.

“People need to review their energy bills and the deals they are on,” said Ron. “The danger is that if they are complacent, they will be sitting ducks if the cap is raised in future.”

He added that it was easy to switch supplier. Before logging on to a price comparison website, have your postcode, the name of your current supplier and your current tariff, which can be found on a recent energy bill.

“The site will suggest the cheapest supplier and if the companies are happy, they can organise the switch online and it should be completed within weeks with no interruption to supply,” added Ron.

For more information about green energy call Ron on 01782 756995. 

Recent Posts
Contact Us

Got a quick question? send us an email and we'll get back to you, ASAP.

Not readable? Change text. captcha txt

Start typing and press Enter to search

Electric car chargingAirplane