HARD-hit households are to get some respite as energy bills fall by £426 from July to an average £2,074.
However, the latest price cap announced by regulator Ofgem is still almost double the average £1,000 to £1,200 paid just two years ago.
GettyEnergy bills are set to fall by £426 from July[/caption]
Experts warn millions will still struggle to afford their bills this year
And experts warn millions will still struggle to afford their bills this year as the Government’s £400 voucher support for low income households came to an end in March.
Ofgem boss Jonathan Brearley said: “It is encouraging to see signs that the market is stabilising and prices are moving in the right direction.”
“We know people are still finding it hard, the cost of living crisis continues and these bills will still be troubling many people.”
Energy costs have been the biggest hit to household finances and a driver of inflation since the war in Ukraine began last February.
And budgets have been further hit by food inflation at a 45-year high and rocketing mortgage costs after the Bank of England hiked interest rates.
Ofgem’s latest estimates, based on the falling wholesale costs, mean bills will fall below the Government’s price guarantee of £2,500 a year for the first time since it was brought in.
But the regulator has not reduced its standing charge rates
Simon Francis, from the End Fuel Poverty Coalition, said: “The sting in the tail to this announcement is that customers are still going to be paying roughly the same for their energy as last winter.”
Despite concerns about the profits of energy giants, Ofgem has said it may increase the profits that suppliers can make under the cap by £10 a year, which is covered by households.