Decline in wholesale gas prices leads to cheaper energy tariffs

At present, the cheapest dual-fuel fixed-term tariff on the market is £411 cheaper than the price cap

Cheaper wholesale energy prices are now benefitting households, with the cheapest energy tariff in the UK falling by £32.60.

That’s according to Compare The Market, which says the sustained period of lower prices could offer ‘competitive priced tariffs’ to households for their energy bills.

While the average price of the cheapest 20 tariffs at the end of February 2020 was £831.80, the prices fell to £824.40 in March.

In April, the prices witnessed an additional reduction of 3.06%, to settle at £799.20.

Despite the tariffs being at their three-year lowest, the price cap of £1,162 is £411 more expensive than the cheapest dual-fuel fixed-term tariff currently on the market.

Peter Earl, Head of Energy at Compare The Market, said: “At a time when many households are worried about the cost of energy, this reduction in prices may offer a helpful way for people to reduce their monthly outgoings.

“For households struggling to afford their energy bills, the government has rightly promised that no one will face their supply of energy being cut. Households finding themselves in a difficult financial situation, especially vulnerable customers, should contact their energy provider for additional support.”

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