Ofgem has slashed the price cap on energy bills to £1,923 after wholesale energy prices fell further, it announced on Friday.
energy price cap
Ofgem is expected to lower household energy bills to an average of £2,053 a year from July to reflect tumbling wholesale prices, according to analysts.
Ofgem is lowering its energy price cap - the amount suppliers are able to charge - from the current £4,279 per year to £3,280 for the average household, effective from April 1, it has announced.
UK government subsidies for household energy bills are expected to plunge to a sliver of their current levels with a slump in wholesale prices.
Energy suppliers may be exposed to around £1.9 billion in debt, much of which could be unrecoverable, as households struggle to pay soaring energy bills.
Rishi Sunak has been named leader of the Conservative Party following Liz Truss' resignation last week, and will take the reins at a turbulent time in British politics.
European Union leaders are struggling to find immediate practical solutions on how to deal with the energy crisis while avoiding an open rift between Germany and France.
First Minister Nicola Sturgeon will chair the second summit with energy industry leaders in less than two months on Thursday.
Recently named Chancellor of the Exchequer, Jeremy Hunt, has announced that the government's energy price cap will be subject to review from April 2023.
The UK government has set out plans to cover half the expected rise in wholesale energy prices in a bid to soften the impact on businesses and non-domestic energy users.
Devolved governments in Scotland, Wales and Northern Ireland have urged the Chancellor not to pass the cost of an energy cap on to struggling families.
Incoming UK Prime Minister Liz Truss is finalizing plans for a £40 billion ($46 billion) support package to lower energy bills for businesses.
Nearly one in four adults plan never to turn their heating on this winter, polling suggests, as average bills are set to rocket while the temperature drops.
UK households will pay almost triple the price to heat their homes this winter compared with a year ago, a jarring increase for millions of people already struggling to afford everyday essentials.
Families face a grim winter as experts predict the cap on energy bills will hit close to £3,600 per year from October - before rising again next year.
An estimated 45 million people in the UK will be forced into fuel poverty and struggle to pay energy bills this winter, new research has found.
Rishi Sunak has ruled out freezing the UK’s energy price cap if he becomes prime minister, while his rival Liz Truss warned against “throwing money” at a short-term fix for the looming winter bills crisis.
Nicola Sturgeon is to convene a summit between energy supply companies and consumer groups later in August to discuss what support can be offered to those struggling to pay soaring bills.
Ofgem has confirmed that the energy price cap will be updated quarterly, rather than every six months, as it warned that customers face a "very challenging winter ahead".
The Government must take urgent action and help the poorest households months before energy bills will rise again ahead of the winter months, the boss of a major energy company has said.
The upcoming Energy Security Strategy provides an opportunity for the Government to break the link between renewable tariffs and fossil fuels, boosting consumer confidence in renewable energy.
The decision by the UK energy regulator Ofgem to give themselves the ability to change the default energy price cap in the event of extraordinary circumstances raises questions about the future of the UK energy market and how effectively it works for smaller suppliers and customers.
The chief executive of BP has argued a windfall tax on North Sea operators could hurt investment and production of gas in the region.
Despite Aberdeen’s status as a global energy hub, household bills are subject to larger market forces, as Energy Voice explains.
Around 11 million households across the country are set to see their energy bills cut by between £60 and £80 a year, according to experts.