Energy bills will be cut by almost £ 75 for more than 11 million households

Energy bills will be cut by almost £ 75 for more than 11 million households

The Ofgem figure drops below £ 100, which is promised to low-value PM customers

More than 11 million households will reduce their energy bills by almost £ 75 per year below a price limit applied by industry regulator Ofgem, following a political bulge at companies that favor loyal customers.

The average saving remains below £ 100, as Theresa May promised to consumers at low prices before handing over her responsibility to set her limit on Ofgem. The total savings of closing the $ 1,136 bills annually are estimated to be around £ 1 billion.

There are 11 million UK households in the standard tariff covered by the border, but only 3 million of them will save more than £ 100 as they are the most expensive standard tariff on the market or high energy users. However, with the cheapest standard tariff offered by six major suppliers, they will only save £ 60.

Ofgem said that the upper limit on standard duties, known as standard variable duties (SVT), would be set at £ 1,136 on the basis of typical fuel consumption and automatic payment. The figure is in line with the analyst's expectations.

The average big six SVT is £ 1,220, but if npower or SSE announces a second price increase before coverage this year, as do their rivals, that figure will increase. Ofgem could explain this in the last version of October; this need not be confirmed at the end of October.

Ofgem said that Parliament will take advantage of the strengths we offer for a solid price limit which will provide consumers with a fairer deal with lower value prices. said the editor's chief executive, Dermot Nolan.

Business Secretary Greg Clark said: This government is fulfilling its promise to end injustice and protect households across the country from unfair price increases.

Labour's shadow business secretary Rebecca Long-Bailey said that while the price tag was a start, it was less than promised.

Theresa May promised how much better 17 million households would be £ 100. Today's announcement is a small economy for fewer people. Despite the Prime Minister's promises, the government raised six major prices.

Conservative imitation means millions of customers will be worse than promised by Theresa May.

The share price of Centrica, owner of British Gas, the largest energy supplier in the UK, increased by 5% in the news. Analysts at Jefferies Bank said the limit was £ 12 higher than forecast, and the impact on Centrica would be manageable.

However, the Energy UK branch agency said the cap would be a "major challenge" for some suppliers.

Nolan said some companies should be more productive, often a sentence that refers to job loss. E.ON announced the 500 layoffs he blamed on the protection, and the merger of npower and SSE is expected to cause more damage.

We expect lower profitability in the future. If they want profitability, they must make such cuts. 

The limit can be adjusted every six months and reviewed in April and October each year. The changes will be due to the costs faced by the suppliers, for example the rising wholesale price for gas and electricity this year. Bernstein Bank said it could jump £ 108 next April.

Nolan and industry supervisors emphasized that the biggest savings for households will still be by switching suppliers.

Comparison sites, which suffered when the prey dropped because people thought they were protected now, said protection would still pay too much.

You are accused of Switch Playing a Dangerous Game by offering them the door at a reasonable price given that the cheapest deals on the market are about £ 300 lower.

Stephen Murray, an energy expert at the Moneys Supermarket, said they do not get a false sense of security through political sound bites.

Consumer groups Citizen counseling and which ones? He welcomed the protection as a step in the right direction, but repeated the urging to shop and change.

When it enters into force at the end of the year, it is possible to see if the prices of large suppliers will be collected just below the limit.

Available for 4 million exposed households in prepaid meters, under a narrower heading, all six are priced at the same maximum permissible level for their duties.