Ofgem Price Cap to give temporary relief, but not for long

From October, BFY Group predicts the energy Price Cap will fall slightly (by around 1%), cutting the average household bill by around £20 a year.

It’s a modest but welcome shift, bringing some stability as we head into winter. However, with money needed to fund vital upgrades to the UK’s energy infrastructure, this fall isn’t likely to stick around.

Matt Turner-Tait, Senior Manager at BFY said, “From October, the energy Price Cap will drop by around 1%, meaning the average household bill will fall by about £20 to £1,700 a year.

“This small decrease reflects stable wholesale energy prices and offers a welcome pause for customers heading into winter, where prices have risen in recent years.

“Despite this, bills are still significantly higher than before the energy crisis, and support is being expanded to help a further 2.7 million homes through the Warm Home Discount.

“Looking ahead, prices are expected to stay steady into January, before a small annual increase of about £25, to fund vital upgrades to the UK’s energy infrastructure and support more renewable energy.”