Household energy bills to fall by about £130 a year as price cap drops

Evening Standard

Household energy bills will fall by 7% from July as the latest energy price cap was revealed by Ofgem.The typical bill will fall by around £129 to £1,720 per year when the regulator's new price cap - which sets the limit on how much firms can charge customers per unit of energy - comes into force.

Transcript

00:00Any government, and it's not just the regulator that can't control the

00:03international gas market, the government can't control the international gas

00:06market. There are some signs that it is stabilised and there are clearly

00:10things that government policy could do that would change elements of our bill

00:14and we certainly do what we can as the regulator to try and bear down on the

00:18costs in the bill and try and help those, particularly those who are struggling

00:21with their bills, and we know that there's a lot of people who are continuing to

00:24struggle with their bills and have got into debt, so we're doing what we can to

00:28try and help them. Help us a bit more with that question in a way, I think

00:32because I suspect I was looking slightly further beyond that because people, this

00:37will be a relief for some people, the 7% drop will be a release on the cap, but

00:43people are thinking what about the winter, what about next, you know how far ahead, so

00:47you're every three months, so cast us six months ahead as best you can at this

00:51point in time and I don't know what degree you can do that. Well and the

00:55challenge there is that we are reliant on these international prices, so you see

00:59things happen geopolitically, if you think about that, so the reason to be

01:03honest for the decrease at the moment has been the introduction of the US

01:06tariffs, that has dampened demand for gas internationally and brought prices down.

01:11It's very difficult to have predicted that in advance in the same way it's going

01:14to be difficult to predict, so while we are still tied to the international gas

01:18prices, it's always going to be volatile and we're all going to be always going to be

01:21susceptible to that. That's why it's so important I think that we move away from

01:25our reliance on international gas, which is what the push for renewables is

01:30trying to do, to give us a stable UK based source of energy that we can rely on

01:35and we'll give a stable price.

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