"Energy regulator Ofgem is forecast to cut the default tariff price cap by about £117 to roughly £1,641 per year for a typical dual-fuel household from 1 April. The change follows government policy announced by Chancellor Rachel Reeves, who said £150 would be removed from average household bills by abolishing the Energy Company Obligation (ECO) scheme introduced under the previous Conservative government."
"Officials warn the reduction will not appear as a flat £150 discount. Instead, savings will mainly come through a lower unit price of electricity, with the final impact varying by: Household size Energy consumption levels Supplier billing structures Consultancy Cornwall Insight estimates the cap could fall by about £145 annually after accounting for VAT and network pricing adjustments. However, rising costs linked to Britain's energy infrastructure, including maintenance and distribution networks, have offset some of the potential savings."
"Wholesale gas prices remain volatile due to geopolitical tensions affecting global energy markets. Analysts expect the cap to remain broadly stable through 2026, with only a small possible increase projected around July. Energy suppliers are expected to issue guidance explaining how the cap change affects individual bills after the official announcement."
Ofgem will cut the default tariff price cap by about £117 to roughly £1,641 per year for a typical dual-fuel household from 1 April. Government policy abolishing the Energy Company Obligation (ECO) removes £150 from average household bills. The reduction will not appear as a flat £150 discount; savings will mainly come through a lower unit price of electricity and will vary by household size, consumption and supplier billing structures. Consultancy Cornwall Insight estimates a cap fall of about £145 after VAT and network adjustments. Rising infrastructure costs and volatile wholesale gas prices have offset some savings, and the cap is expected to remain broadly stable through 2026.
Read at London Business News | Londonlovesbusiness.com
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