Brits to save £240 on average as Ofgem change comes in next week

Ofgem confirmed that it will drop the price cap by 12.3 per cent for a typical dual-fuel household in England, Scotland, and Wales. This will drive the current cap from £1,928 down to £1,690 - a drop of £238 a year or roughly £20 a month.

Ofgem chief executive Jonathan Brearley said: “This is good news to see the price cap drop to its lowest level in more than two years – and to see energy bills for the average household drop by £690 since the peak of the crisis – but there are still big issues that we must tackle head-on to ensure we build a system that’s more resilient for the long term and fairer to customers.

“We also need to address the risk posed by stubbornly high levels of debt in the system, so we must introduce a temporary payment to help prevent an unsustainable situation leading to higher bills in the future. We’ll be stepping back to look at issues surrounding debt and affordability across market for struggling consumers, which we’ll be announcing soon.

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