Average annual energy bill to fall from July, regulator announces

The average annual energy bill will be £506 cheaper than a year ago from July, the sector's regulator has announced.

The energy price cap - which limits what can be charged per unit of energy - is due to fall from the month after next.

It means the average annual bill will be £1,568 a year, 7% less than at present.

During the current period from 1 April to 30 June, the energy price cap is set at £1,690 per year for a typical bill.

Energy regulator Ofgem sets the cap four times a year, with the latest announcement applying from July to September.

The overall rate of inflation which came down in April was in large part thanks to the current higher cap which came into effect that month and brought prices down for energy users, the Office for National Statistics.

While the July figure is a reduction, bills are still more expensive than before the COVID-19 pandemic and many households are in debt to energy providers.

"The fall in the energy price cap reduces bills slightly, but our data tells us millions have fallen into the red or are unable to cover their essential costs every month," said the chief executive of Citizens Advice Dame Clare Moriarty.

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