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The energy price cap for households in Great Britain is to fall to £1,923 a year for the usage of a typical home, according to the energy regulator, Ofgem.
The new average figure will apply from October to December. It is expected to rise again for January.
The cap was set at £2,074 for July to September.
Ofgem said: "The change will bring the average dual-fuel energy bill below £2,000 a year for the first time since April 2022, saving households an average of £151 on the previous quarter.
"From 1 October to 31 December, the cap will be set at an annual level of £1,923 for a dual-fuel household paying by direct debit based on the current typical domestic consumption values (TDCV) rate."
Ofgem said the price cap is at the lowest level since October 2021.
Jonathan Brearley, Ofgem's chief executive, told BBC Radio 4's Today programme the price cap drop was a “welcome relief for households”, and “an actual drop in the cost of energy”.
He said: "I would love to come on this show and tell you prices are going to fall but the truth is, markets are still tight.
"The situation is much more stable this year. We have a lot more gas available.
"But the market is still tight. Things are going to be volatile for some time to come."
Brearley said many families were going to struggle.
When asked about social tariffs, which would charge less to poorer households, Brearley said: "We support that being in the mix of the options we might examine.
"Ultimately, that is a decision for government. I have to accept, as a regulator, I don’t have to think about the fiscal position. I don’t have to think about all the pressures on families."
The agenda
• 9am BST: Germany Ifo business climate index (August; previous: 87.3 points; consensus: 86.7)
• 3.05pm BST: the Federal Reserve chair, Jerome Powell, gives a speech at Jackson Hole
We’ll be tracking all the main events throughout the day ... |
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