£240 off fuel bills but pain will last years

5m behind on energy payments

ENERGY bills are set to tumble by nearly £240 a year from the spring, but campaigners warn millions of families will still be locked in fuel poverty.

Regulator Ofgem confirmed its price cap for those on standard tariffs will fall from an average of £1,928 to about £1,690 from April 1, saving the average household around £20 a month.

Bills are predicted to drop again in July thanks to lower wholesale energy costs.

But charities warn prices still remain higher than before the energy crisis fuelled by the Ukraine war.

Jonathan Brearley, Ofgem chief executive, said: “It is good news to see the price cap drop to its lowest level in more than two years, and to see energy bills 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.”

Citizens Advice chief executive, Dame Clare Moriarty, also welcomed the fall in the price cap but added “the impact of sky-high prices will be felt for years to come”.

She went on: “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.”

Joanna Elson, of Independent Age, said the charity continues to hear from people who are being forced to make drastic cutbacks, such as washing less or sitting in darkness.

There are still big issues we must tackle to ensure we build a system that’s fairer

OFGEM BOSS JONATHAN BREARLEY ON ENERGY PRICE CAPS