Millions of families will save £80 a year as Theresa May’s energy price cap comes into effect
MILLIONS of families will save up to £80 a year as Theresa May’s energy price cap finally delivers this week.
Watchdog Ofgem is to lower the maximum price firms can charge for electricity and gas by as much as six per cent, after costs to the industry fell dramatically.
As many as 11 million households on standard variable tariffs will see a welcome drop in bills.
Rik Smith, at uSwitch, said: “We’ve seen the wholesale market costs falling pretty steadily since the end of 2018 and expect a cut of between £60 and £80."
The change takes effect in October but there may not be an instant benefit as firms spread the cost over the year via direct debits. Mrs May had said when PM that it would save families up to £100 a year.
The cap was first set at £1,137 for dual fuel customers in January, but then rose by £117 just three months later.
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In response, Big Six suppliers hiked their prices right to the limit, denying customers savings.
The current level of £1,254 will be changed by Ofgem this Wednesday after the wholesale price of gas and electricity fell, meaning that hard-pressed households will finally see the benefit.
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