Ofgem has lowered price caps on gas and electricity which means lower energy bills for millions of British households this April. 

Ofgem, the government regulator for the electricity and downstream natural gas markets, has reduced the default price cap and pre-payment meter cap by £17 which will lower the bills of around 15 million households in the UK. The default price cap will fall from £1,179 to £1,162 for the April-September period, while the pre-payment meter cap will drop from £1,217 to £1,200 a year for the same 6 months. 

Wholesale gas and electricity is at its lowest price for the past 10 years and it was thought that Ofgem might have made more dramatic cuts than those it has announced. In its statement, Ofgem said: "a strong supply of gas, such as record amounts of liquefied natural gas and healthy gas stock inventories, has been the main factor pushing down wholesale prices". 

Switching supplier can save you more 

Chief Executive of Ofem, Jonathan Brearley, explains the reason for the introduction of the cap is to protect those customers on poor value default or standard variable tariffs and advises that households could save even more by switching their supplier. He said: "Suppliers have been required to become more efficient and pass on savings to consumers. In its first year, the cap is estimated to have saved consumers £1bn on average on their energy bills and switching rates have hit record levels.” He adds: “Households can reduce their energy bills further by shopping around for a better deal."

Ofgem has been under pressure to do more to control energy prices after complaints that suppliers have been overcharging. To help ensure fair pricing and that suppliers pass on any savings to their customers, Ofgem reviews its price caps every six months.

Established in 1990, Greenstar provides professional plumbing, boiler, heating and drainage services to homes and businesses across the South. So, if you’re in need of a Gas Safe registered engineer, please don’t hesitate to contact our team today on 01202 355 344 and we’ll be more than happy to help.