New energy price cap at £1,923 for Oct-Dec

This adjustment will result in the average dual-fuel energy bill falling below £2,000 per year, marking the first time since April 2022

UK energy customers will witness a decrease in their energy bills by around £151, as a result of the forthcoming adjustment in the energy price cap, which is slated to be lowered to £1,923.

Ofgem has today unveiled the latest price cap adjustment.

This update will result in a reduction of the energy unit cost for the upcoming three-month period starting in October.

However, due to decreased government support and elevated fixed expenses, a considerable portion of individuals will observe only marginal variations in their payment amounts.

For a home consuming an average volume of gas and electricity and utilising direct debit for payments, the existing annual bill amounts to £2,074.

In 2022, on 26th August, the energy regulator disclosed a significant increase in the energy price cap to £3,549 annually, scheduled for implementation on October 1st.

Jonathan Brearley, Ofgem’s Chief Executive Officer, remarked, “It is welcome news that the price cap continues to fall, however, we know people are struggling with the wider cost of living challenges and I can’t offer any certainty that things will ease this winter.”

Mr Brearley further explained, “That’s why we’ve introduced new measures to support consumers including reducing costs for those on prepayment meters (PPM) and introducing a PPM code of conduct that all suppliers need to meet before they restart installation of any mandatory PPMs.”

Energy Security Secretary Grant Shapps said: “It’s encouraging families will see their energy bills continue to fall from October, down £580 on average since their peak – another milestone as we deliver on our promise to halve inflation.

“We acted swiftly when prices soared because of Putin’s abhorrent attack on Ukraine, spending billions and covering around half a typical household’s bill.”

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