Good news for households! Energy bills will see a drop this April, with the average household saving around £150. This comes as the UK Government plans to cut costs by revamping the energy price cap. From April 1st, Ofgem is expected to lower the cap by £117, bringing it down to £1,641 a year for a typical home.
Chancellor Rachel Reeves announced that the reduction is partly due to scrapping the Energy Company Obligation (Eco) scheme. But don’t expect a straight £150 off your bill! The savings will mainly be applied via a lower price per unit of electricity, so your exact discount will vary depending on how much energy you use.
Keep an eye out for updates from your energy supplier after Wednesday’s announcement. While you’ll generally pay less per unit, factors like network charges and fluctuating wholesale prices also play a role in your final bill. Experts suggest the cap will remain steady throughout the year, with only a small increase forecast in July.
As Emily Seymour from Which? highlights, these changes will be a relief for many grappling with cost-of-living pressures. But remember, your actual savings will depend on your usage. Simon Francis of the End Fuel Poverty Coalition echoes this, urging everyone to stay informed about unit costs and standing charges, ensuring you make the best decisions for your household.
Stay tuned for more details and happy saving!