Energy bills fall by £151 for millions TODAY as new price cap comes in – what it means for you | The Sun
ENERGY bills will fall by £151 for millions of households from today as the new price cap has come into effect.
The price cap has fallen from £2,074 to £1,923 today, the lowest figure since March 2022.
This is down from £2,500 last winter, when the government's Price Guarantee limited bills to lower than the actual price cap.
However, the government's £400 energy support scheme – which ended in June, actually brought typical yearly bills down to £2,100.
The four million customers on pre-payment meters will pay an average annual bill of £1,949 a year from today.
The price cap is set by energy regulator Ofgem and changes every three months.
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It restricts the amount energy suppliers are allowed to charge customers per kilowatt per hour, or unit, of gas and electricity used.
It also caps standing charges, which is the fee you pay to be connected to the grid before you even use any energy.
It's important to note that this is not a cap on the overall amount people will pay for their energy.
The price cap figure quoted is the amount a household with typical usage will pay.
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If you consume more energy than the average household, you will pay more than this cap.
The exact unit rates and standing charges you pay will vary slightly based on your supplier, where you live and how you pay your bills.
It's generally cheapest to pay by direct debit, but not everyone has the ability to pay this way.
The Sun revealed today that British Gas has quietly ditched giro slips from thousands of customer bills, meaning thousands of people will no longer be able to pay at the Post Office.
While the price cap has gone down for the next three months, experts are still concerned some households will pay more for their energy this year than they did last year.
Those who use less energy than the average family are more likely to be affected.
According to The Resolution Foundation, households who consume less than 79% of typical gas and electricity consumption will see higher bills this winter.
This is because the government's £400 energy bill discount isn't being repeated this year.
Standing charges have also increased dramatically over time. The fees are now expected to add more than £300 to a typical bill for the first time.
Cornwall Insight, which predicts energy price cap changes, currently expects average bills will rise again to around £2,032 from January 1 before falling to £1,964 in April and £1,917 in July.
Suppliers have started relaunching fixed rate tariffs almost two years after pulling them from the market.
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The uncertainty around bills this winter is leaving many households wondering whether now is the right time to get a fixed deal.
We have put together a handy guide to understanding whether or not you should fix here.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.
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