If you were hoping that this month's drop in the energy price cap signalled the start of lower gas and electricity bills, you will probably be disappointed.
Energy experts are warning that pressure on household budgets caused by high energy prices is unlikely to ease in the next 15 years, with analysts at Cornwall Insight saying that prices in Britain will not shift below 2022 levels 'until the late 2030s'.
The average energy bill is now £2,074 a year - the level of the price cap set by regulator Ofgem. A typical household will pay no more than £3,000 a year for energy due to the Government's Energy Price Guarantee promise, which ends next March. Based on the difference between the earlier Energy Price Guarantee (EPG) of £2,500 and the new price cap of £2,074 for direct debit customers, the average household should save £426 a year. But the reality is that most families will save just a few pounds a month because the £400 Energy Bills Support Scheme (EBSS), which subsidised bills from October-March, has come to an end, with no sign of a repeat for winter 2023.
