Response to Ofgem’s energy price cap reduction

Ofgem has today announced that the energy price cap will fall by £84 to £1,042 a year from October – the lowest level since the cap was introduced last year.

Ofgem has today announced that the energy price cap will fall by £84 to £1,042 a year from October – the lowest level since the cap was introduced last year.

The price cap for pre-payment meter customers will fall by £95 to £1,070 a year. The new levels will remain in place until March 2021.

The changes mean around 11 million households on default tariffs and 4 million on prepayment meters will benefit from significant savings on their energy bills this winter. The reduction is due to a sharp decrease in wholesale gas prices since the cap was last updated in February.

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"This reduction in the price cap represents a much-needed financial boost for millions of households, at a time when many people are struggling due to the economic impact of Covid-19 and lockdown.

Shopping around for a cheaper energy deal is still the best way to save money, particularly for customers on standard variable tariffs, but before switching to a new supplier it’s a good idea to check out its customer service credentials.

Review sites and other online tools give an idea of the quality of service on offer and can help people to make an informed decision when switching.

Of course, price matters, especially at the moment, but customer service is important too.”

Ed Dodman, director of regulatory affairs at the Energy Ombudsman