Ofgem unveils revised energy price cap

Ofgem is expected to announce a potential reduction in the energy price cap from £3,280 to around £2,100 for the period from July to October

Energy regulator Ofgem is set to unveil the energy price cap figure that will be in effect from July until the end of October.

The current cap stands at £3,280 for a typical household, but it is worth noting that consumers benefit from the government‘s £2,500 Energy Price Guarantee.

Analysts are anticipating that Ofgem might announce a reduction in the price cap to approximately £2,053.

Typical energy bills, surpassing £2,000, will persist at nearly double the pre-crisis level caused by Russia’s gas supply restrictions prior to its invasion of Ukraine.

Analysts from consultancy Cornwall Insight caution that these elevated costs are unlikely to revert to pre-2020 levels “before the end of the decade at the earliest,” creating concerns for financially strained households.

Fuel poverty charity National Energy Action reveals that approximately 6.5 million individuals would continue to endure fuel poverty despite the new price cap, indicating that the energy crisis is far from resolved.

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