Energy price cap drops – but most households will barely notice

Bills are still twice what they were last year. It’s time to consider a social tariff for the vulnerable, writes James Moore

Energy prices are set to remain high, affecting consumers and busineses and instutions such as schools and hospitals (AP)

It’s a sign of the mess we’re in that Ofgem’s energy price cap falling to £2,074 in July is portrayed in some quarters as good news.

“Roll up, ladies and gentlemen, no pushing in the queue for party poppers, it’s a celebration! You’ll be paying nearly twice what you were a couple of years ago!”

Most households will barely notice the 17 per cent reduction in the cap when it comes into force. Until now, the government’s energy price guarantee held prices at an average of £2,500 by limiting the unit price of electricity paid by consumers (so final bills were still dependent upon usage). This was supplemented with £400 of extra support through the winter, which has already been withdrawn. The guarantee will now also fall away.