Ofgem announced a reduction in the Energy Price Cap as of April 2023 which is good news for UK households.
It will be reduced to £3,280 per annum (about £1,000 less than current levels) which is based on dual duel consumption for a typical household. Households will still see a rise in bills by £500 per year on average.
The bad news is that we will still see a 20% increase in our current bills if the government still goes ahead with their reduction of the energy price guarantee level.
In October 2022, the Government introduced the energy price guarantee, which is essentially a government subsidy where the government pay a proportion of our energy bills during this cost of living crisis.
This is different to the energy price cap, which is set by Ofgem and based on wholesale rates that energy retailers pay. The Government has no say over this cap.
Whereas Ofgem is announcing a reduction in the energy price cap due to the reduction in wholsale gas prices, it will not mean that UK households will see this reduction in their outgoings.
This is because the Government is planning to lower the energy price guarantee by 20% which in a cost of living crisis when many households are already feeling the squeeze, this is not good news.
Most of the next points are fairly standard ways to reduce energy consumption, however it is good to have a reminder from time to time. What we will highlight is that these tips would be a great way to reduce energy usage and save money in a savvy way.
During this cost of living crisis, where things are at a financial breaking point for families across the UK, it has highlighted that the standard of living is at an all time low.