Exact amount your energy direct debit will drop by from October – and some will save more than others

MILLIONS of households will see their energy bills drop this autumn.

It comes after the energy regulator announced that typical gas and electricity bills will be capped at £1,923 a year from October 1.

The fall in Ofgem's price cap will mean a typical household will see their bills fall by £151 a year.

The energy price cap works by setting a limit on the maximum amount suppliers can charge for each unit of gas and electricity.

It's not a cap on how much you can be charged for the energy that you use - so if you use more, expect to pay more.

However, we've crunched the numbers to establish how much certain households will save when bills fall in October.

We've worked out how much a typical small, medium and large household currently pays via direct debit each month and how much they'll pay when the price cap changes after the summer.

But don't expect to be charged the exact figures we've crunched.

These are based on national averages and it's important to remember that the price cap is only a limit on what suppliers can charge - not how much your bills will be.

If you use more energy, expect to pay more. And if you use less, your account may be in credit and your direct debits may be reduced to reflect this.

Your monthly direct debit may also vary depending on if you're in debt or have significant credit with your energy supplier.

A small household made up of one to two people uses around 8000kWh of gas and 1,800kWh of electricity every year.

Right now, these households pay roughly £120 a month on their energy bills.

But the same household could see their bills drop to £112 a month from October 1 - which represents a £8 a month saving.

A medium household is made up of two to three people and uses an average of 12,000kWh of gas and 2,900kWh of electricity every year.

The average monthly bill for these households under the current cap sits at £173 a month.

But the same household could see their bills drop to £160 a month from October 1 - which represents a £13 a month saving.

That leaves larger households often made up of four to five individuals who use roughly 17,000kWh of gas and 4,300kWh of electricity every year.

Right now monthly bills for these homes average £239.

But the same household could see their bills drop to £221 a month from July 1 - which represents a £18 a month saving.

How are gas and electricity rates changing and how can I calculate my bill?

Right now, a typical household that pays their energy bill by direct debit pays the following rates:

• 7.51p per kilowatt hour (p/kWh) for gas
• 30.11p/kWh for electricity
• A standing charge of 29.11p per day for gas
• A standing charge of 52.97p per day for electricity

But from October 1, Ofgem will introduce the following new rates: