The UK energy regulator has cut the price cap on domestic energy bills by £1,206 following a fall in wholesale gas and electricity prices.
The price cap will fall to £2,074 per year from July for typical households, compared with £3,280 over the past three months.
The cap governs the maximum energy suppliers can charge customers on default tariffs, although since October the government has been footing a chunk of the bill for households.
The drop in the level of the cap means that government support will now fall away, while typical households will pay around £426 per year less.
However, bills under the cap will still be around 60 per cent higher than before the surge in energy prices that started in late 2021 — in the run-up to Russia’s invasion of Ukraine — that helped push up the UK’s rate of inflation and trigger the cost of living crisis.
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