Gas and electricity bills fall by £122 a year for average household
Gas and electricity bills have fallen by the equivalent of £122 a year for the average household - just days before the General Election in a boost for Rishi Sunak.
The energy price cap set by regulator Ofgem dropped by 7 per cent this morning, which translates into a fall in annual dual fuel bills from £1,690 to £1,568.
This is the lowest level since winter 2021/22 - before the surge that follow Russia's invasion of Ukraine - and is about £500 lower than a year ago, when it was £2,074.
Some 10million households have now been urged to send energy meter readings to their supplier as cheaper prices come into effect in England, Scotland and Wales.
Britons on a standard variable tariff - as opposed to a fixed deal - and who do not have a smart meter should submit their electricity and gas readings to their supplier as close as possible to July 1 to ensure they are billed accurately at the lower prices.
Those who do not submit readings risk having some of their usage after this date charged at the previous, more expensive rates.
Suppliers who have not received meter readings base their bills on estimated usage, meaning households could be overpaying, while others may not be paying enough.
The average household is expected to spend £83 on energy in July, compared with £127 in June, due to the lower cap and lower usage due to warmer weather, comparison site Uswitch calculated.
The latest fall offers further relief to households given the previous quarter-on-quarter drop seen in April, but analysts have said they expect Ofgem to increase the price cap in October, before dropping it again in January 2025.
Uswitch also urged households to investigate other tariffs, including fixed deals, to beat the predicted October price hikes.
| Fuel | Energy price cap per unit and standing charge - 1 April to 30 June 2024 | Energy price cap per unit and standing charge - 1 July to 30 September 2024 |
|---|---|---|
| Electricity - pence per kWh | 24.50p | 22.36p |
| Electricity - pence daily standing charge | 60.10p | 60.12p |
| Gas - pence per kWh | 6.04p | 5.48p |
| Gas - pence daily standing charge | 31.43p | 31.41p |
| Figures from Ofgem are rounded to two decimal places and based on the England, Scotland and Wales average for people who pay by Direct Debit. These include VAT. |
Ben Gallizzi, energy spokesman at Uswitch, said: 'There are a number of fixed tariffs worth considering right now.
'By opting for a fixed deal, you're locking in those rates for the duration - usually 12 months - which means households could have price certainty and avoid the ups and downs of the price cap.'
Simon Francis, coordinator of the group, said: 'Throughout the energy bills crisis we have seen sluggish progress on insulating and ventilating our homes, bringing down standing charges, moving to cheaper energy sources and bringing in comprehensive support for vulnerable households with their energy bills.
'Had we seen more concerted action on all these fronts, then the Ofgem price cap coming into force on 1 July would be £1,071.98 - £496.62 lower than what the average household is going to be paying.
'Given energy bills will stay high for the foreseeable future we now need the next Government to act quickly after the election to end energy debt, protect households from the volatile global energy market, bring down bills for good, improve housing standards and make Britain a clean energy nation.'
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