Ofgem price cap information: Energy bills to fall as Martin Lewis reveals cheapest way to pay

The Money Saving Expert founder defined how vitality costs are predicted to drop by round 17 per cent this yr and shared one repair that would get an individual’s prices down even additional.

The price cap is ready 4 instances a yr, with the subsequent adjustment set for 1 April.

Although some consultants consider the cap will fall on the subsequent assessment, Mr Lewis shared his “no brainer” trick to beat the price cap by three per cent within the meantime.

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Money professional Martin Lewis has revealed his 5 prime suggestions for the cheapest vitality tariffs after Ofgem introduced the price cap drop on Friday.

Responding to the announcement, Mr Lewis unveiled 5 key factors of data together with recommendations on which is the cheapest way to pay, switching offers and the way to undercut the price cap.

“The new rates for 1 April have just been announced. In a nutshell, for every £100 a Direct Debit user spends on energy today, they’ll pay £87.70 for it from 1 April,” he posted on X.

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Even after the vitality price cap drop, bills nonetheless stay 60 per cent larger than they have been earlier than the vitality bills disaster started, the End Fuel Poverty Coalition warned.

Simon Francis, co-ordinator of the organisation, added: “Three years of staggering energy bills have placed an unbearable strain on household finances up and down the country.

“Household energy debt is at record levels, millions of people are living in cold damp homes and children are suffering in mouldy conditions.

“Everybody can see what is happening in Britain’s broken energy system and it is time for politicians to unite to enact the measures needed to end fuel poverty. This includes cross-party consensus on a long-term plan to help all households upgrade their homes and short-term financial support for households most in need.”

The head of Citizens Advice welcomed Ofgem’s announcement this morning, however warned that “the impact of sky-high prices will be felt for years to come”.

Dame Clare Moriarty added: “It’s good news that the cost of energy is falling, but the impact of sky-high prices will be felt for years to come.

“We know more than five million people live in households behind on their energy bills and, with the price of energy still far higher than just three years ago, many people will struggle to pay off these debts.

“The government promised a new plan for energy bill support by April 2024, but will miss its own deadline. And the withdrawal of cost-of-living payments this spring will make it so much harder for many of those already finding it difficult to make ends meet. Without action, people will face a cycle of winter crises year after year.”

Ofgem has introduced the newest price cap right this moment as households put together to see their vitality bills fall to their lowest stage in additional than two years.

The fall will likely be £1,690 from April 2024 – a fall of £238 for the common dual-fuel family.

The change will come into impact in April, lasting three months till the top of June.

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The 12 per cent common fall is due to come into impact on 1 April and can final three months till the top of June.

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Ofgem chief govt Jonathan Brearley stated: “This is good news to see the price cap drop to its lowest level in more than two years – and to see energy bills for the average household drop by £690 since the peak of the crisis – but there are still big issues that we must tackle head-on to ensure we build a system that’s more resilient for the long term and fairer to customers.

“That’s why we are levelising standing charges to end the inequity of people with prepayment meters, many of whom are vulnerable and struggling, being charged more up-front for their energy than other customers.

“We also need to address the risk posed by stubbornly high levels of debt in the system, so we must introduce a temporary payment to help prevent an unsustainable situation leading to higher bills in the future. We’ll be stepping back to look at issues surrounding debt and affordability across market for struggling consumers, which we’ll be announcing soon.

“These steps highlight the limitations of the current system – we can only move costs around – so we welcome news that the Government is opening the conversation on the future of price regulation, seeking views on how standard energy deals can be made more flexible so customers pay less if using electricity when prices are lower.

“But longer term we need to think about what more can be done for those who simply cannot afford to pay their energy bills even as prices fall. As we return to something closer to normality we have an opportunity to reset and reframe the energy market to make sure it’s ready to protect customers if prices rise again.”

Good morning and welcome to our reside updates on Ofgem’s vitality price cap announcement.

The common family vitality invoice is to fall to its lowest level in two years from April after Ofgem lowered its price cap in response to wholesale costs.

The regulator introduced it’s dropping its price cap by 12.3% from the present £1,928 for a typical twin gasoline family in England, Scotland and Wales to £1,690, a drop of £238 over the course of a yr or round £20 a month.

Ofgem stated the drop would see vitality costs attain their lowest stage since Russia’s invasion of Ukraine in February 2022, which triggered a spike in an already turbulent wholesale vitality market, driving up prices for suppliers and clients.