In July, Ofgem announced a 7% reduction in the energy price cap, lowering the average annual bill to £1,720. This decrease follows a previous 6.4% rise and is attributed to falling wholesale gas prices, which contribute 90% to the cut. Despite this relief, bills remain significantly higher than pre-crisis levels, prompting calls for government action to support vulnerable households. Experts caution that future price changes depend on various unpredictable factors, such as weather and geopolitical tensions, indicating a complex energy market landscape ahead.
This drop in energy prices will ease the burden for some households, but bills are still significantly higher than before the crisis.
The upcoming reduction reflects a significant fall in wholesale gas prices, which Ofgem said accounted for around 90% of the cut.
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