Energy prices are expected to fall sharply in April, with the regulator Ofgem announcing the price cap will fall to £1,690.
This means a reduction of £238 (12%) from the current cap, £1,928 a year for a typical household.
It is the lowest level in more than two years, after post-COVID demand, a global squeeze on gas supplies and Russia’s invasion of Ukraine sent bills soaring.
The regulator’s price cap affects 29 million households in England, Wales and Scotland. Rules are different in Northern Ireland, where prices are also falling.
Ofgem sets the maximum amount that suppliers can charge for each unit of gas and electricity but not the total bill, so if you use more, you will pay more.
But even after any drop in the cost of energy, prices will remain above pre-pandemic levels.
