Ofgem has announced a drop in the energy price cap for the second quarter of 2024.
Effective from 1st April to 30th June, the price cap, which determines the maximum rate per unit for customers’ energy usage, will decrease by 12.3% compared to the previous quarter.
For the average household paying via direct debit for dual fuel, this means a cap of £1,690 annually, resulting in a £238 yearly reduction and approximately £20 in monthly savings.
This reduction brings energy prices to their lowest point since the turbulence caused by Russia’s invasion of Ukraine in February 2022.
The invasion exacerbated the already volatile wholesale energy market, driving up costs for suppliers and, consequently, for consumers.
Cornwall Insight consultancy had previously forecasted a 14% decrease in the energy price cap, bringing the average yearly bill down to £1,656.
Energy Security Secretary Claire Coutinho said: “My mission is to cut costs and get bills even lower so that families can spend their money on the things that matter most to them.
“Today we’re announcing further measures to slash bills for families and improve access to cheaper, flexible deals.”