Energy bills to fall for millions of Britons as price cap dips 7%
The reduction is welcome news for the government, under pressure to ease a cost-of-living squeeze, and comes after data earlier this week showed a bigger-than-expected rise in inflation in April.
"Global wholesale prices for energy have gone down. While this is the main cause, changes to supplier business costs have also made an impact on energy prices falling," Ofgem said.
Wholesale gas and power prices are a major part of the formula the regulator uses to calculate the price cap. Benchmark British gas prices have fallen almost 40% since their peak in February, dented by fears over an industrial slowdown and global trade war and after the EU parliament backed weaker gas storage rules.
Despite the fall, domestic energy prices remain about 50% higher than they were in the summer of 2021, before Russia's invasion of Ukraine sent gas prices soaring and sparked an energy price crisis in Europe.
Consumer groups warned energy costs remain unmanageable for many households and called for more support for those struggling.
"Any fall in the price of energy is always welcome news, but this is a short fall from a great height. Bills remain punishingly high for low-income households," said Adam Scorer, CEO of energy poverty charity National Energy Action.
British Prime Minister Keir Starmer on Wednesday said he recognised older people were feeling the pressure of energy prices and he wanted to ensure more pensioners become eligible for winter fuel payments, having curbed the number of people eligible last year.
Ofgem's new cap of £1,720 (R41,552) a year for average use of electricity and gas is down £129 (R3,116) from the previous cap for April to June.
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TimesLIVE
10 hours ago
- TimesLIVE
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IOL News
10 hours ago
- IOL News
Westville Prison's new bakery: A dual benefit for inmates and taxpayers
Correctional Services Minister Dr Pieter Groenewald tastes a piece of bread baked by Westville Prison inmates at the new Durban Management Area Bakery at the prison. Image: Sibonelo Ngcobo / Independent Newspapers The opening of the Durban Management Area Bakery at Westville Prison in Durban was for the benefit of taxpayers and the rehabilitation of inmates. Correctional Services Minister Dr Pieter Groenewald said it was an honour to open the bakery because it will benefit South African taxpayers. 'This bakery can produce 3,840 loaves of bread daily. The rate is about 480 loaves of bread an hour,' Groenewald said. 'We have almost 50 inmates involved in the bakery, meaning they get a pre-training and then they also rotate in certain ways to ensure that they also are practically part of the process.' Video Player is loading. 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Advertisement Next Stay Close ✕ Ad loading Inmates at Westville Prison engage in hands-on training at the newly opened bakery, learning valuable skills for their reintegration into society. Image: Sibonelo Ngcobo / Independent Newspapers Groenewald said this is part of rehabilitation, ensuring that when the inmates leave Correctional Services facilities, they are successfully reintegrated into society. 'When they finish here, they will receive a certificate to say that, and this is part of their skills they have learned in Correctional Services, so it's a dual benefit for the inmates on the one side and the taxpayers on the other side,' Groenewald said. 'We will save more or less R3 million annually with this bakery. The facility cost us about R7 million, but it is an investment, so we must also see this as an investment; after about two years, we will have the full benefit.' Groenewald said they produce a loaf of bread for R8. 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If they go out of the Correctional Services facilities, they will get a certificate saying they have worked and have the specific skills in terms of bakery. They will get a job easily when they are out, and some of them can even start bakeries. Correctional Services Minister Dr Pieter Groenewald highlights the dual benefits of the new bakery: enhancing inmate skills and reducing costs for South African taxpayers. Image: Sibonelo Ngcobo / Independent Newspapers 'So that is another bonus because we have an obligation as Correctional Services to ensure that there is successful law-abiding reintegration in our society.' Groenewald said that before selection, the inmates had their records looked at. They see what category of inmate they are. Then, in terms of different skills, they get selected and do a pre-course on bakery. 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The South African
11 hours ago
- The South African
Shell and Total dealt devastating South Africa offshore drilling blow
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