MILLIONS of households will see energy bills fall by up to £95 in October after Ofgem has announced a slash in the price cap.
Prepayment meter customers will see bills fall by £95 a year while those on metered energy will benefit from an £84 cut in costs.
The maximum providers will be able to charge for energy this winter will be set at its lowest level at £1,042, down from the current cap at £1,126.
For prepayment meter customers the cap will fall from £1,164.
The regulator says that it will ensure 15million households continue to pay a fair price for their energy.
Around 11million of these customers are on default tariffs and 4million on prepayment metres, which Ofgem says equates to around half of the population.
The price cuts have been driven by lower wholesale costs for gas following the coronavirus pandemic, when in lockdown costs hit a 20 year low.
But the regulator warned that if wholesale costs to rise as lockdowns are eased, the cap is likely to rise again in April 2021.
More to follow…
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