Energy bills will drop for about 15 million households as the price bonus drops

Energy bills will drop for about 15 million households as the price bonus drops

Gas and electricity bills will drop for about 15 million households this summer after the energy regulator Ofgem has lowered the price limit on standard invoices in response to falling global energy markets.

The average dual-fuel energy bill will drop from £ 1,179 to £ 1,162 to £ 1,162 for 11 million households using the standard variable energy tariff to purchase their energy. For the 4 million homes with prepaid meters, there will be a similar segment and the average gas and electricity price will drop from £ 1,217 to £ 1,200.

Ofgem has dropped the coverage intended to guarantee a fair price for energy customers in line with the price of the fall in gas and electricity on the wholesale energy markets. It will enter into force on April 1 and will remain in effect for six months.

Energy Minister Kwasi Quarten said: "The price limit saves the average borrower from £ 75 to £ 100 a year and helps everyone survive the cold without worrying about costs.

Jonathan Brearley, Ofgem’s new general manager, said that since the cover was launched early last year, households have been saving nearly £ 1 billion, but energy bills can save more by "shopping for a better deal".

Cheaper fixed-term deals can help homes save several hundred pounds a year if they go through a default tariff, which saves £ 17 from the low price limit.

Sarah Coles, a personal finance analyst at Hargreaves Lansdown, said "switching to a new energy deal" could be better than ever. "

The threshold has fallen less than some industry commentators have suggested, as the cost of switching to wholesale energy last year was offset by the cost of maintaining electricity grids and paying for government policies - all of which must be paid for by energy.

Robert Buckley, an energy expert at Cornwall Insight, said the headline could drop as much as $ 60 a year, "he focused heavily on the wholesale employee, and that did not affect some of the extra policy and network costs."

He said Ofgem made some "technical adjustments" in price limit calculations to update the typical consumption and energy supply costs of homes in the UK and reflect changes in the industry.

The Guardian reported late last year that millions of homes could expect lower energy bills in 2020, after the market price of gas fell by half to reach the lowest levels not seen in ten years.

The market price for gas in the UK reached 24.75p, a deadline of 10 years in September. This figure averaged 55.63p in the year before a record number of gas loads from the USA, Russia and Qatar were poured into Europe.

S&P Global Platts predicted that the gas price could drop to 27p by 2020 on average, as more seaborne gas loads move towards the shores of England.

Buckley said that if the wholesale energy markets remain similar to those seen in winter, customers can expect another "slight reduction" to the title this year. According to consumer groups, households should still consider changing their tariffs and suppliers to find the best energy deals.

Ed Dodman of the Energy Ombudsman said the regulator's falling energy price limit should not “prevent people from shopping around for better deals. We will encourage consumers to look at the customer service they can expect to receive and how much they can save. Sites and customer viewing tools, such as the Citizen Advice star rating table, which is based in part on data from energy researchers, allow consumers to make informed decisions.