British Gas, EDF, OVO, E.On and Octopus energy customers will get an £238 boost from Easter Monday. The price cap will drop to a two-year low of £1,690 for average use dual fuel customers from 1 April to 30 June 2024.
This is a significant drop from the current level of £1,928. It could also be followed by another decrease in the summer. The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy and standing charge if you're on a standard variable tariff.
Between 1 April to 30 June 2024 the energy price cap is set at £1,690 per year for a typical household who use electricity and gas and pay by Direct Debit. Ofgem announced the new price cap - to much fanfare - earlier this year, as UK households are given some much-needed respite in the Cost of Living crisis.
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Mike Thornton, chief executive at Energy Saving Trust, said: “Lower energy prices may ease some of the pressure on households this spring but energy costs remain inflated. The ongoing fluctuations only further highlight the UK’s susceptibility to unstable international fossil fuel markets.
“The solutions centre around strengthening the UK’s energy security. In practice, this means supporting people to use less energy to start with, rolling out low carbon heating and scaling up UK renewable energy generation and storage. All of which are also key to achieving net zero targets.
“While we know that improving energy security is high on the political agenda this election year, current and proposed policies in these areas are missing the mark. Rather than making long term commitments to improve the UK’s inefficient housing stock, we’re seeing roll backs and watering down from all sides.
“All parties need to recognise that providing people with financial incentives underpinned by independent, personalised advice, will enable and empower them to actively engage in upgrading their homes to permanently lower energy bills and carbon emissions."
