Latest news with #MatthewCole
Business Mayor
23-05-2025
- Business
- Business Mayor
Energy price cap cut by 7% for households across Great Britain
Show key events only Please turn on JavaScript to use this feature Newsflash: domestic gas and electricity prices for millions of households across Great Britain will fall by 7% from July – the first drop for a year. Energy regulator Ofgem has announced that its quarterly cap on domestic gas and electricity charges would fall from July by the equivalent of £129 a year for the average home, due to the drop in wholesale energy prices in recent months. The cut, to the maximum cost of a unit of electricity and gas, means a typical annual dual-fuel bill will drop to £1,720. But, there's no cap on how high a bill can be. You can see the details from Ofgem here. Households which buy their energy through variable tariffs will see an immediate impact on their bills as the cap takes effect in July. But bill payers could still face higher bills if they use more than the typical amount of energy. However, prices would still be higher than a year earlier, and significantly above levels seen at the start of the decade. Four years ago, for example, the price cap was set at £1,138 for an average household. Reaction to follow…. Share Charities fear that many households will struggle to pay their energy bills, even if the price cap is lowered this summer. Matthew Cole, CEO of Fuel Bank Foundation, warned this week: 'The drop in the energy price cap from July may sound like good news, but for many people already struggling to make ends meet, it won't go far enough. Even in summer, when heating isn't needed as much, energy is still essential; people need it to cook meals, run a washing machine, stay clean, and keep fridges and medical equipment running. These are basic needs, not luxuries. 'The cost of living is still incredibly high, and many people, especially those who are vulnerable or have low incomes, are dealing with energy debt built up over the last few years of sky-high bills. 'A slight drop in prices won't fix that. People are still being forced to make tough choices — between topping up the meter or putting food on the table. Share Today's price cap announcement comes just two days after Prime Minister Sir Keir Starmer signalled a partial U-turn on cuts to pensioners' winter fuel payments, after a backlash. Share Good morning. British households may learn today that energy bills will fall this summer, for the first time in a year. Energy regulator Ofgem is poised to announce its latest price cap on bills in England, Scotland and Wales this morning, at 7am, and industry analysts predict it will be cut. The cap limits how much firms can charge customers for units of gas and electricity, and is set every quarter. This time, experts are forecasting the cap will be cut for the first time in a year, due to recent falls in the wholesale gas and oil prices. That would lower the energy bills of millions of households across Britain in July-September. Earlier this week, consultancy Cornwall Insight predicted the cap will be cut by 7% – that would slash around £129 off the annual bill for a typical dual-fuel household this summer, from £1,849 under the current limits. However, it's important to note that the cap applies to the cost of a unit of energy – there's no cap on how large a bill a family can run up. And as Dr Craig Lowery, a consultant at Cornwall, pointed out on Monday, energy bills were still too high for many. 'Prices are falling, but not by enough for the numerous households struggling under the weight of a cost of living crisis, and bills remain well above the levels seen at the start of the decade.' 'The fall is also a clear reminder of just how volatile the energy market remains – if prices can go down, they can bounce back up, especially with the unsettled global economic and political landscape we are experiencing. This is not the moment for complacency.' The agenda 7am BST: Ofgem to announce latest energy price cap 7am BST: Retail sales report for Great Britain in April 9.30am BST: Latest estimate for how many UK young people are not in education, employment or training 3pm BST: US new home sales data Share READ SOURCE
Yahoo
23-05-2025
- Business
- Yahoo
Energy price change set to cut bills by over £100 a year
Energy regulator Ofgem is shortly expected to announce a fall in domestic gas and electricity prices for millions of households from July - the first drop for a year. The regulator's price cap, which is set every three months, affects the amount paid for energy by 22 million households in England, Scotland and Wales. Analysts have forecast a fall of more than £100 in the annual bill for a home using a typical amount of gas and electricity. Charities say cheaper bills would be welcome but many people still struggle to pay, and millions of customers collectively owe about £4bn to suppliers. Ofgem will announce the price cap for July to the end of September at 07:00 BST. The price cap does not apply in Northern Ireland, which has its own energy market. Although the cap changes every three months, the regulator illustrates the effect of this with the annual bill for a household using a typical amount of gas and electricity. This typical household is assumed to use 11,500 kWh of gas and 2,700 kWh of electricity a year with a single bill for gas and electricity, settled by direct debit. Analysts at the energy consultancy Cornwall Insight have forecast a drop in the annual bill of £129, a fall of nearly 7%. The fall would mean a typical annual bill for a dual-fuel customer paying by direct debit would cost £1,720, down from the current level of £1,849. It would also more than reverse the £111 increase in a typical bill under the current price cap, which came into force at the start of April. Customers can also estimate their own potential saving by knocking 7% off their monthly direct debit. However, prices would still be higher than a year earlier, and significantly above levels seen at the start of the decade. High bills in recent years have also led to ballooning levels of customer debt to suppliers, with just under £4bn owed. "The cost of living is still incredibly high, and many people, especially those who are vulnerable or have low incomes, are dealing with energy debt built up over the last few years of sky-high bills," said Matthew Cole, chief executive of the Fuel Bank Foundation, a fuel poverty charity. "A slight drop in prices won't fix that. People are still being forced to make tough choices between topping up the meter or putting food on the table." The price cap announcement comes just two days after Prime Minister Sir Keir Starmer signalled a partial U-turn on cuts to winter fuel payments. More than 10 million pensioners lost out on the payments, worth up to £300, when the top-up became means-tested last year. However, Sir Keir told the Commons on Wednesday that the government wanted "more pensioners" to be eligible again. It remains unclear how many will regain their entitlement for the payments, how that will be achieved, or when the changes will take effect. How much is the winter fuel payment and who can still get it? Energy price cap: What next for gas and electricity bills and can I fix?
