LECCY BILLS ARE ZAPPED BY CAP
Price cut to bring £80 savings
CLOBBERED households will see their energy bills slashed by £60 to £80 a year in a price cap cut.
It will be good news for around 11million households.
Regulator Ofgem will unveil the new top charge for homes on standard variable tariffs on Wednesday.
The cap was raised by 10% in April to £1,254 a year for the average home. But wholesale prices – which energy companies pay for gas and electricity – have fallen in recent months and a cut of 6% is expected.
Rik Smith, an energy expert at uSwitch, said: “We’ve seen the wholesale market costs falling pretty steadily since the end of 2018 and expect a cut of between £60 and £80 – but we think it will probably be closer to £80.”
Energy supplier E.on reckons £70 will be knocked off the average standard tariff bills.
But Mr Smith warned that customers may not see an immediate change to bills.
He said energy suppliers would take their time reviewing households’ direct debits, which spread bill costs out throughout the year.
Mr Smith added: “Is this move going to free up money for Christmas? The answer is no. The cost per unit may come down, but it will take time for these energy companies to review direct debits.
“So, if you’ve been paying £100 a month and you’re on a standard variable tariff, it doesn’t mean your bill will come down.”
The price cap was introduced under Theresa May, with the former PM promising to cut £100 off bills.
FINALLY some good news for hardworking British households with 11million set to see their energy bills cut.
The Government has announced a new flagship price cap saving up to £80 a year. And it’s about time.
For far too long energy companies have been increasing prices unchecked for heating and lighting UK homes.
But is it down to a change of heart from Britain’s cash-rich energy providers? Have they made this decision out of the goodness of their hearts? Not likely.
The amount energy companies pay for gas and electricity has fallen in recent months – a cut of around 6% is expected.
Let’s just hope this is a new trend in Government policy – heaven forbid – actually benefiting the people who vote them in.