Response to energy price cap reduction [July 2020]

Energy bills are to fall for millions of British households this April, after regulator Ofgem announced it would be lowering price caps.

Energy bills are to fall for millions of British households this April, after regulator Ofgem announced it would be lowering price caps.

The default price cap, which protects around 11 million households, is set to fall from £1,179 to £1,162 – a reduction of £17.

Meanwhile, the prepayment meter price cap will fall to £1,200 for a dual fuel customer with typical usage.

As a result, energy bills will fall for around 15 million households who are protected by the price caps.

Read today’s announcement in full on the Ofgem website

Ed Dodman, director of regulatory affairs at Trust Alliance Group, which runs the Energy Ombudsman scheme, welcomed the news.

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“This reduction in the price cap is good news for the millions of UK households currently on default tariffs but shouldn’t discourage people from shopping around for better deals.

“When switching, we would encourage consumers to look at the customer service they can expect to receive as well as how much money they could save.

“Customer review sites and tools such as the Citizens Advice star ratings league table – which is based partly on Energy Ombudsman complaints data – will enable a consumer to make an informed decision.”

Ed Dodman, director of regulatory affairs at Trust Alliance Group