The price of energy is set to fall for millions of British households this October after the regulator, Ofgem, lowered price caps. However, bills will still be higher than they were in January when the first price cap came into force.
Ofgem sets maximum prices that can be charged for gas and electricity to those who have not switched suppliers and are on default tariffs. Audrey Gallacher, Director of Policy at Energy UK, said:
“The vast majority of a typical energy bill is made up of costs that are outside of an energy company’s direct control, with wholesale costs accounting for the biggest proportion. Today’s announcement reflects that there’s been a fall in wholesale costs since Ofgem last set the cap level.
“It remains a challenging environment for suppliers of all sizes but a competitive market means that customers can benefit from increased choice and good deals – either by contacting their own supplier or joining the near half a million customers that switch provider every month. Also, to deliver net-zero emissions by 2050, we must increase the energy efficiency of our homes which will save customers potentially hundreds of pounds by using less energy.”
Contact Act on Energy TODAY for help and advice on switching energy suppliers and making your home more energy efficient.