In a significant turn of events, UK households are witnessing the lowest energy bills in two years, following Ofgem’s implementation of a new price cap. The average annual cost for a typical gas and electricity usage has seen a reduction of £238, now standing at £1,690. Despite this decrease, experts caution residents to maintain their energy-saving practices, as the overall expenses remain substantial. This development comes as a relief amidst the backdrop of heightened energy prices since the onset of the Ukraine conflict.

Key Points:

• Energy Price Cap Update: Ofgem’s new price cap results in the lowest energy bills in two years for UK households.
• Annual Bill Reduction: Typical gas and electricity usage sees a decrease of £238, with the annual bill now at £1,690.
• Standing Charge Increase: Fixed daily charges for connecting to energy supplies have risen to 60p for electricity and 31p for gas.
• Prepayment Meter Rates: Households using prepayment meters will have a slightly lower typical bill of £1,643.
• Quarterly Payment Impact: Customers paying quarterly by cash or cheque face higher bills, with a typical amount of £1,796.
• Energy Consumption Advisory: Despite the price drop, experts advise maintaining energy-saving habits due to the continued high cost of bills.
• Financial Pressure on Households: The collective debt to energy suppliers stands at £3 billion, attributed to prolonged periods of elevated energy prices.
• Consumer Experience: Personal accounts highlight the struggle to manage energy costs, with many adopting stringent measures to reduce usage.