Household energy bills to fall by £129 as price cap drops
Ofgem, the energy regulator, has set its price cap – the amount suppliers are allowed to charge their customers – at £1,720 per year, falling from its current cap of £1,849.
It follows three consecutive increases in bills that have heaped pressure on consumers and driven the rate of inflation up. Ofgem changes its price cap every three months.
Energy industry analysts at Cornwall Insight this week predicted that another 'modest drop' would follow in October, with another to come in January.
The fall in household's bills comes after Donald Trump's trade war hammered gas and oil prices as uncertainty over tariffs weighed on prices.
At the same time, Opec cartel members have been pushing through oil production increases, adding further downwards pressure.
Adam Scorer, chief executive of National Energy Action, said despite the fall household bills still remained 'punishingly high'.
He said: 'Four years of extraordinarily high energy bills has taken its toll. We hear heart-breaking cases every day.'
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