Ofgem have today announced that, from 1 July, the energy price cap will be reduced to £2,074. This new cap, confirmed by Ofgem, is a reduction in last quarter’s cap and will deliver to customers a direct a saving of £426 based on typical domestic consumption.

The government introduced the Energy Price Guarantee (EPG) in October 2022, capping prices for a typical household at £2,500. While energy prices have been above this, the Government has paid the difference to energy providers and has effectively been paying half of households’ energy bills since the introduction of the EPG.

With prices now falling, Ofgem is able to update the price cap more regularly every quarter, instead of every six months. This will mean savings are passed onto households quicker with the next quarterly price cap update being issued in August.

Despite the fall in price cap, Mrs Lopez recognises that this cap is still much higher than the-2021 average and households will struggle with their bills. However, this reduction is welcome news as, for the first time since gas prices began to massively increase 18 months ago, prices are falling for customers on default tariffs.

For more information on the energy price gap, please visit - Customers to pay less for energy bills from summer | Ofgem