Ofgem price cap news: Energy bills to fall as Martin Lewis reveals cheapest tariffs
Ofgem’s energy price cap to drop to lowest level in more than two years
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Martin Lewis has revealed the most cost-effective tariffs after Ofgem unveiled an energy price cap.
Households are set to pay £238 less a year in energy bills from April after Ofgem unveiled its energy price cap.
The best tariff deals, according to the money-saving expert, are E.on Next’s ‘Next pledge’ which remains 3% less than the cap and British Gas’s price promise which could be up to 12% less than the cap.
The money-saving expert says traditionally pre-payment was a rip-off however now they will be around 3% cheaper to equalise charges with direct debit payments.
He said on X: “Prepay, which many of the most vulnerable use, was always the rip off, so this is a staggering turnaround.
“And this is unlikely to be a flash in the pan - this pricing structure is likely to continue for the foreseeable future.”
He warned users on cap plans before moving to prepay deals as providers usually offer more competitive deals to direct debit customers.
The new price cap is set to fall by 12.3% from the current £1,928 to £1,690 from April 1 for a typical dual fuel household in England, Scotland and Wales.
We’re closing our live coverage of the Ofgem announcement but keep checking independent.co.uk for the latest updates.
Energy bills: How are Labour and the Conservatives proposing to help households?
Household energy bills are set to fall to their lowest point in two years, with Ofgem announcing this week it will lower its price cap by 12.3 per cent.
The regulator’s new price cap, which will come into effect in April, will see the average household gas and electricity bill fall from the current £1,928 in England, Scotland and Wales to £1,690 – a drop of around £20 a month, or £238 a year.
Ofgem said the drop would see energy prices reach their lowest level since Russia’s invasion of Ukraine in February 2022, which caused a spike in an already turbulent wholesale energy market, driving up costs for suppliers and customers.
Read the full story here...
Energy bills: How are Labour and Conservatives proposing to help households?
How do Labour and the Conservatives’ plans differ?
Comment - Martin Lewis is right: the energy price cut is welcome – but not quite as good as it looks
Afew weeks ago, the BBC’s Newsnight programme conducted a focus group of disillusioned voters, who were mostly pretty negative about our leading politicians. Asked who, in an ideal world, they’d like to have as prime minister, quite a few volunteered the name “Martin Lewis”, the well-known Money Saving Expert and consumer champion.
Of course, Lewis has got no political ambitions (so far as we’re aware) and even for a man of his adamantine, not to say saintly, integrity, political office might force him into the kinds of messy compromises ministers have to make. Far better to have him as the watchdog-in-chief, the man who regulates the regulators, such as Ofgem, who’ve decided to reduce the energy price.
Read the full piece here...
Martin Lewis is right: the energy price cut is welcome – but not as good as it looks
While some households will see their bills fall by more than 12 per cent, domestic energy costs are still at an all-time high – and they don’t look to be coming down any time soon, writes Sean O’Grady
What does Ofgem’s price cap mean for my energy bills?
The typical household energy bill will fall to its lowest level for two years from April but will still remain well above pre-pandemic levels.
What can households expect over the coming months, and are years of exorbitant energy bills finally coming to an end?
Read the full story here...
What does Ofgem’s price cap mean for my energy bills?
Lower wholesale prices have led to Ofgem dropping its price cap from April, which will bring some relief to households.
Octopus energy comment on Ofgem’s price cap
Rachel Fletcher, Director of Economics and Regulation at Octopus Energy, comments:
“It’s good to see Ofgem extend the ban on teaser tariffs, but it needs to end them once and for all. A permanent ban would force suppliers to compete by innovating and driving lower costs - rather than lazily relying on ‘tease and squeeze’ tactics, designed to lure customers in on temporary cut-price deals.
“A permanent ban on rip-off tariffs will prevent a return to the wild west energy market - which bamboozled customers and cost them billions in bailing out failed suppliers.”
Why is Ofgem’s price cap falling?
The fall reflects drops in wholesale energy prices – the amount energy firms pay for gas and electricity before supplying it to households.
The latest cap will see prices fall to their lowest level since Russia’s invasion of Ukraine in February 2022, which caused a further spike in an already turbulent wholesale energy market, driving up costs for suppliers and ultimately customers.
Market volatility led to the cap reaching a staggering £4,279 in January last year, although customers were partly shielded from this by the Government’s Energy Price Guarantee, which limited the average bill to £2,500.
Analysts Cornwall Insight said the lower cap suggested that the UK has, for now, weathered the storm of Red Sea tensions, securing a steady supply of LNG (liquefied natural gas) through the Atlantic.
Good availability of supply in Europe and Asia, in part due to mild weather, has also contributed to the drop in prices.
What does Ofgem’s price cap mean for my energy bills?
The typical household energy bill will fall to its lowest level for two years from April but will still remain well above pre-pandemic levels.
What can households expect over the coming months, and are years of exorbitant energy bills finally coming to an end?
Read the full story here...
What does Ofgem’s price cap mean for my energy bills?
Lower wholesale prices have led to Ofgem dropping its price cap from April, which will bring some relief to households.
PM weighs in on energy bills
Rishi Sunak has said the public are “feeling that the economy has turned the corner” and “things are getting better”.
Taking questions after a speech at the Welsh Conservative conference in Llandudno on Friday, the Prime Minister said: “There is a palpable sense out there, regardless of what Keir Starmer might want to say because he’s always keen to talk down Britain, I can tell actually on the ground people are, since the beginning of this year, feeling that the economy has turned the corner.
“They do see those green shoots. They can see that things are getting better.
“Inflation has been more than halved, mortgage rates starting to come down, wages have been rising for six, seven months in a row now.
“We just saw today … energy bills significantly down. Consumer confidence, business confidence, again, survey out yesterday, highest it’s been in years. Businesses like yours feeling better about the future.
“And that is why it is so important that we stick to our plan.”
Energy bills: How are Labour and Conservatives proposing to help households?
Household energy bills are set to fall to their lowest point in two years, with Ofgem announcing it will lower its price cap by 12.3 per cent.
The regulator’s new price cap, which will come into effect in April, will see the average household gas and electricity bill fall from the current £1,928 in England, Scotland and Wales to £1,690 – a drop of around £20 a month, or £238 a year.
Ofgem said the drop would see energy prices reach their lowest level since Russia’s invasion of Ukraine in February 2022, which caused a spike in an already turbulent wholesale energy market, driving up costs for suppliers and customers.
Read the full story here...
Energy bills: How are Labour and Conservatives proposing to help households?
How do Labour and the Conservatives’ plans differ?
Is the cap a maximum for energy bills?
The cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them for each unit of power.
The amount you pay will depend on actual household usage as well as meter and payment type.
In addition, Ofgem will redefine its annual typical usage definition for future prices, to account for people that are using less energy.
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