Energy price cap to fall but bills to rise
Local TV
2023-02-27
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Ofgem has reduced the amount suppliers can charge households for energy, but bills will still rise in April as government assistance fades.
The announcement by Ofgem does not directly affect what customers will pay for gas and electricity, but it does reduce the government's costs.
In April, the average household bill will rise to £3,000 per year.
Campaigners argue that ministers should halt the hike because Ofgem's new cap lowers the cost of support.
The average annual household bill will rise from £2,100 to £3,000 in April as government assistance, known as the Energy Price Guarantee (EPG), becomes less generous and a £400 winter discount on all bills expires.
Currently, the government compensates energy suppliers for the difference between the guarantee and Ofgem's cap.
The energy price cap was £4,279 in January, but Ofgem announced on Monday that it would be reduced to £3,280 in April due to falling wholesale prices.
The announcement by Ofgem does not directly affect what customers will pay for gas and electricity, but it does reduce the government's costs.
In April, the average household bill will rise to £3,000 per year.
Campaigners argue that ministers should halt the hike because Ofgem's new cap lowers the cost of support.
The average annual household bill will rise from £2,100 to £3,000 in April as government assistance, known as the Energy Price Guarantee (EPG), becomes less generous and a £400 winter discount on all bills expires.
Currently, the government compensates energy suppliers for the difference between the guarantee and Ofgem's cap.
The energy price cap was £4,279 in January, but Ofgem announced on Monday that it would be reduced to £3,280 in April due to falling wholesale prices.
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