The July 1st energy price cap saw a 7% drop in gas and electricity prices across England, Scotland, and Wales.
With the new price cap, the annual dual-fuel energy bill who are consuming a typical amount of energy are going to be paying around £1,568. This can change due to the type of property, its energy efficiency, and how many people are living at the property.
Ofgem based the cap on a household consuming 11,500 kWh of gas and 2,700 kWh of electricity a year in a single contract with their supplier, paying by direct debit.
Those customers who pay their bills every three months by cash or cheque have fallen by £129 to £1,668.
Prepayment Customers
Those on prepayment meters will pay a bit less than those paying by direct debit. An annual bill will be around £1,522, that’s a drop of £121.
After the April price cap announcement, prepayment customers paid the same as those paying with direct debit. Four million homes across the country have prepayment meters installed, many of which have been in place for years and some being installed more recently. The recent installations have been implemented to help those who struggle to pay their energy bills.
However, there are rules for prepayment meters which state customers are given the opportunity to clear debts before having a meter installed and certain homes cannot have them installed.
Standing Charges
Standing charges will be staying the same, at a daily rate of 61p for electricity and 31p for gas, though it can vary region to region.
Should Energy Prices be Fixed?
There is hope that energy suppliers could offer cheap fixed-price deals but if prices drop again, those who fix could be stranded at a higher price.
When contemplating fixed deals, Ofgems advise that consumers should seek advice and consider the most important factors for them; lower prices or the security a fixed deal provides.
What Helps is Available to Lower Energy Bills?
There are many government back grants out there that will help alleviate high energy bills and improve the energy efficiency of homes. With the July energy price cap decrease now could be the time to find out if you are eligible for these grants. Use the buttons below to navigate the different grants available:
