Money Wellness
Illustration of a couple in front of an electric meter working out their energy costs
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calendar icon24 May 2024

Average energy bills to fall by £122 a year

The amount a typical household will pay for energy is set to fall by £122 a year between July and September, bringing it to the lowest level in over two years.

Ofgem has announced that average gas and electricity prices for a typical household will drop by around 7.8% to £1,568 per year, when it reduces the energy price cap in July. It will review the price cap again before October.

The actual amount you pay will depend on how much gas and electricity you use, where you live and the type of meter you have.

Despite the decrease, our energy bills will still remain around £400 higher than when the cap was introduced in 2019, with Ofgem reporting record energy debt levels of £3.1 billion earlier this year.

What is the energy price cap?

The energy price cap is the maximum amount gas and electricity suppliers can charge you per unit of energy.

Ofgem takes into account the different costs suppliers have when setting the cap, with the main influencing factor being the wholesale price of energy.

Does it apply to me?

The energy price cap only applies to energy providers’ standard and default tariffs, not their fixed-term deals.

You’re covered by the energy price cap if you pay for your electricity and gas:

  • when you get your bills
  • by direct debit
  • using a prepayment meter
  • with an economy 7 (e7) meter

What if I can’t pay my energy bills?

You’re not alone: 53% of people who rang us for advice between February 2023 and January 2024 had fallen behind on paying their energy bills.

Find out what to do if you’re struggling to pay your energy bills. Whatever you do, don’t ignore the problem.

Falling into arrears with your energy payments is classed as a priority debt. Priority debts have the most serious consequences if you don’t pay them. You could have your gas or electricity supply cut off if you don’t catch up with your payments.

Contact your supplier as soon as you start struggling to pay and they’ll try to work out an arrangement that suits you both.

Is there any financial support available?

Some providers also offer grants to help struggling customers or your local authority’s household support fund (HSF) might be able to help you out too. The HSF has been extended until the end of September to help the most vulnerable households pay for essentials like food and utility bills. Contact your local council to find out if you're eligible.

If you’re vulnerable, check you’ve signed up to the priority services register. It’s free and means you’ll get extra support from your energy supplier. 

On top of this, if money is tight, it's worth checking you’re getting all the benefits you’re entitled to.

But I’m still struggling with my bills

If you've done everything we've suggested and your income still isn't covering your costs, it may be time to consider free debt advice. If you come to us for help, we'll go through your personal circumstances and finances in detail and talk through the options available to you. You can access our advice online or over the phone.

Avatar of Rebecca Routledge

Rebecca Routledge

A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.

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