Summary
Energy bills for 21 million households in England, Scotland, and Wales will decrease due to a new price cap set by Ofgem. However, the exact future of energy prices is uncertain, with potential rises in winter and influences from global events. People are encouraged to explore fixed deals for possible savings.
Key Facts
- Ofgem has reduced the energy price cap, lowering bills by about £11 a month for typical households.
- The 7% decrease in energy bills starts from Tuesday and affects variable tariffs, not fixed deals.
- Fixed deals set a price per unit of energy, not the total bill, which depends on actual usage.
- Current fixed deals could offer a potential saving of £200 annually, but only 35% of people use them.
- Energy price predictions are uncertain due to potential influences such as Middle East instability.
- Cornwall Insight predicts a further 1% reduction, but stresses unpredictability in future prices.
- Energy bills are still higher than before the pandemic, even after adjusting for inflation.
- Community programs, like the project by Stevenage Football Club, teach families to manage food and energy costs effectively.
