Ofgem’s New Energy Price Cap comes into effect from July 1st: Here’s what you need to know

How is the Ofgem energy price cap set to affect your bills? The new price cap comes into effect from July 1st.

Transcript

00:00The Ofgem energy price cap is set to come into effect from July 1st, but how is it set

00:05to impact your bills? Well, the new price cap covers 28 million households in England,

00:10Scotland and Wales, fixing the maximum price that can be charged for each unit of energy

00:15on a standard tariff, which pays by direct debit. With this new cap, the typical household's

00:20energy bill is thought to fall by around £122 a year. As a result, bills are set to be the

00:26lowest for around two years, though forecasters do expect that bills could rise again as we

00:31work on the heating on the run-up to winter. In fact, leading consultancy agency Cornwall

00:36Insight predicts that the typical household's annual bill will be back up to £1,723 in

00:42October. This works out as a 10% increase from now. Further, the typical household's

00:47energy bill remains around £400 higher than it was three years ago. The energy price cap

00:53is set to stay in place until the end of September, but do you think that this new

00:57cap is enough to help with struggling households?