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Britain’s peak energy price to fall to £1,568 in summer | Energy bills

Britain’s energy price cap will fall by 7% to the equivalent of £1,568 a year this summer, following a fall in wholesale gas prices.

Set by energy regulator Ofgem, the cap reflects the average annual dual fuel bill for 29 million homes and comes into force from July to the end of September.

The limit, which is set quarterly, will drop at £122 in July from its current level of £1,690, easing pressure on household finances.

While that represents a boost for struggling consumers, it still leaves bills well above the £1,154 limit in summer 2021, before the energy crisis. Wholesale gas prices began to rise sharply in 2021 and increased after the large-scale Russian invasion of Ukraine in early 2022.

Bills have since fallen from their peak in 2023 (when the limit hit £4,279 but the government subsidized bills to keep them at £2,500), but they remain above pre-crisis levels, meaning Millions of households are expected to remain in energy poverty.

Jess Ralston, energy analyst at the Energy and Climate Intelligence Unit, said: “Households are still struggling with bills that are hundreds of pounds higher than pre-crisis levels, and estimates suggest bills may return. to increase as we approach winter.

“Whatever the color of the next government, we will be heading into a winter that will continue to rely heavily on volatile gas markets and set back our energy independence. “The cost of living, driven in part by energy bills, and the UK’s energy security may well be key electoral issues, so how the parties decide to address them will likely be in the spotlight.”

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The peak price is expected to rise slightly in October before falling again in January 2025, according to analysis by consultancy Cornwall Insight. He had predicted the July cap would be £1,574 a year.

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