Households across the UK are eagerly awaiting next month’s announcement from Ofgem, the energy regulator, regarding the latest price cap update.
The energy price cap defines the highest allowable price per kilowatt-hour (kWh) of energy that energy suppliers can charge consumers.
This price cap figure does not represent the total energy bill that households pay; the actual bills vary based on the amount of energy consumed.
Analysts predict a £214 reduction in the price cap level.
Currently, consultancy Cornwall Insight projects the price cap to dip from the current £2,074 to £1,860 for typical households in October, followed by a rise to approximately £1,960 in January.
These price cap estimates remain significantly higher than the pre-pandemic norm – the price cap was £1,277 in October 2021.
However, consumers should keep in mind that the government’s Energy Price Guarantee discount has ended, impacting potential savings for some.
The official price cap evaluation will be disclosed on 25th August.
