Ofgem Lowers Energy Price Cap, Household Bills to Drop by 7% from April

In Brief

Ofgem will reduce the energy price cap by 7% from April, lowering average household bills.

Key Facts

• Ofgem is lowering the energy price cap for domestic energy bills from April 2024.
• The cap will drop by £117 to £1,641 per year for the average household.
• The reduction amounts to around £10 per month in savings for typical households.
• The change follows government announcements and budget measures aimed at reducing energy costs.
• Chancellor Rachel Reeves previously promised a £150 annual cut, but rising costs limited the reduction.

What Happened

The UK energy regulator Ofgem announced that the price cap for domestic energy bills will decrease by 7% from April 2024. This will lower the average annual bill from £1,758 to £1,641, saving households approximately £10 per month.

Why It Matters

The reduction in energy bills provides financial relief to millions of households amid ongoing cost-of-living pressures. While the decrease is less than the £150 cut previously promised by the Chancellor, it reflects efforts to manage energy prices in a volatile market influenced by global events.