Brits to pay much less for power as payments drop – see how a lot you will save right here
Brits are set to save money (for once) as energy bills of a typical household are could decrease by £122 annually from July.
Thanks to the new price cap, announced by Ofgem, British households consuming an average amount of gas and electricity will be charged £1,568 per year. This is a reduction from the current annual cost of £1,690, equating to a saving of £122.
It’s important to note that the cap sets the maximum price for a unit of energy, not the total bill, so some households may end up paying more . . . to explain how British energy bills work you’ll need a degree in math.
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The new cap results in a 9% drop in unit prices for both gas and electricity. Standing charges have also been reduced, albeit by less than 1%.
To help you figure out the changes to your bill, simply input your current payments for both gas and electricity into our handy calculator, and it will provide a new estimate based on the new cap.
Our energy calculator is only applicable to dual fuel direct debit customers. It won’t work if you use a prepayment meter or pay upon receipt of bills, as these payment methods have different unit rates and standing charges.
Will Owen, an energy expert at Uswitch.com, commented: “A 7% drop in the energy price cap from July to September is good news for the 28 million households on standard tariffs, who should see bills coming down.
“While this is the lowest price cap we’ve seen in over two years, storm clouds are on the horizon with the cap predicted to rise again in October. This would mean higher rates over the winter, when we use the most energy for heating our homes.
“If you’d prefer to avoid the uncertainty of rising costs in winter, now is a good time to think about taking a fixed energy deal, which would let you lock in rates while prices are cheaper.
“Fixed energy tariffs are the cheapest they’ve been since summer 2021 and there are some great value deals currently worth considering.”
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