Energy bill to drop 17% this weekend as new price cap kicks in

Typical households on default energy tariffs will see their bills drop by £426 a year as the latest energy price cap comes into play this weekend

Blue Flame Of Gas Stove Burner
(Image credit: © Getty images)

Millions of households are set to see their energy bills drop from 1 July after Ofgem, the energy regulator, lowered the Energy Price Cap. A;thoigh this is good news, prices still remain at record highs - almost doube pre-crisis levels.

The cap has been reduced from its previous level of £3,280 to £2,074, with the new cap applying from 1July to 30 September. It is cheaper than the government’s Energy Price Guarantee (EPG) which currently takes the average typical bill to £2,500 and has been the default tariff for households. The EPG will end on 30 June and the new energy price cap will come into play. To make sure you pay the new rate from 1 June, make sure you take a energy meter reading by midnight 30 June.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More
John Fitzsimons

John Fitzsimons has been writing about finance since 2007, and is a former editor of Mortgage Solutions and loveMONEY. Since going freelance in 2016 he has written for publications including The Sunday Times, The Mirror, The Sun, The Daily Mail and Forbes, and is committed to helping readers make more informed decisions about their money.