Energy prices due to drop from July | Tenant news

Households across the UK will save hundreds of pounds on their annual energy bills as wholesale market energy prices drop.

It means that, if you’re a typical household on a default energy tariff, you could see your energy bills drop by £426 a year.

What is the energy price cap?

Ofgem, the energy regulator, has cut the energy price cap, which puts a limit on the maximum rates energy firms can charge on their standard tariff in England, Scotland and Wales.

From July, the energy price cap will drop from £2,500 to £2,074 per year, a reduction of around 17% (based on the energy use of a typical household).

Read more about the energy price cap and how it works.

What will my bill drop to?

If you want to work out your household budget for summer, the MoneySavingExpert team has created a helpful calculator to help you work out how much your bill is likely to be.

Visit how much will I pay from July? to use the calculator.

Paying via direct debit?

If you’re currently paying your bills via direct debit, you might not see an immediate decrease in your direct debit payment. That will usually happen over time.

If you’re concerned that you’re paying too much, you should contact your energy supplier to discuss it with them.

Read Your energy provider might owe you money for more information on overpaying your direct debit.

Need help with your energy bills?

Although the news of dropping energy costs is a welcome one, many low-income households may still find it hard to pay their bills.

If you’re struggling to pay your energy bills you may be able to get help from the Government, your energy provider or local council.

Visit Habinteg’s website for more information on how you can get help paying your energy bills.