The UK energy regulator has announced on Thursday that the energy price cap is to be cut from £3,280 per year to £2,704 per year from July.

The UK energy regulator announced on Thursday that the energy price cap is to be cut from £3,280 per year to £2,704 per year from July.

This is a fall of over £1,206 per year for the average household which means some families could see up to an additional £100.50 per month in their pocket. Because of the drop in the price cap government support will now start to stop as households will pay £426 less per year.

This is the first time in 18 months that prices have started to come down after the Ukraine-Russia war started in 2021. The further decline in the energy price cap will help reduce inflation and meet the government’s 5% inflation target for the end of the year.

‘it is very hard to predict the future’ but the Ofgem regulator is hoping fixed price energy deals will now start to come back to the market offering better budgeting for many families.