Posted on 8th August 2019
The energy regulator, Ofgem, lowered energy price caps which means that the price of energy is set to fall for millions.
Ofgem sets the maximum prices that can be charged by energy suppliers for gas and electricity. The new cap could see millions of households pay £75 less per year.
Ofgem boss Dermot Nolan said: “The price caps require suppliers to pass on any savings to customers when their cost to supply electricity and gas falls.”
“This means the energy bills of around 15 million customers on default deals or pre-payment meters will fall this winter to reflect the reduction in cost of the wholesale energy.”
How do these price caps work?
Energy price capping was brought in under Theresa May, and is designed to protect the vulnerable.
From next year, Ofgem will set the cap twice a year for households in the UK (Except Northern Ireland who has a separate energy regulator).
The price cap is placed on the unit price of gas and electricity, as well as a maximum standing charge.
Energy suppliers are not allowed to charge default tariffs that are higher than these price caps.
How effective are the price caps?
The first price caps came into force at the start of the year, and have been revised twice since then. – Once in April, and again in October.
The price cap is effective in ensuring that consumers aren’t blindsided by default tariff price rises, however it is still much more cost effective to just switch supplier when the time comes.
Will my bill fall automatically?
The price cap is per unit of energy and not on the total energy bill. This means a family living in a 3 bed home will still use more energy and still pay more than someone living alone in a two bed flat.
The new price cap takes effect in October, just when people are starting to switch their heating back on.
Ofgem still encourage that people shop around for cheaper energy tariffs from other suppliers.
Find out more information from Ofgem here,
Kevin Brown, Precision Plastics (Guernsey) Limited
We are a medium sized independent Builders & Plumbers Merchant / Home Improvement Centre based in the Channel Islands and always looking for quality products to add to our portfolio and offer to our discerning customers. Quality is important on a contained Island market as word of mouth plays a large part in the success of our business.
We took on EHC in 2012 and , in a nutshell, “haven’t looked back”. The Comet range of boilers has proved very popular with installers and householders alike and is now being seen by developers as the perfect choice for their projects giving us many repeat sales. We have also received very favourable comments on their solar equipment.
Having reliable back-up is a major factor on island and to this end EHC have proved to be a top-rated supplier always quick to deal with any minor problems that may arise.
Speed of delivery is excellent, positive feedback from our customers is as good as 100%, and their support at trade shows and provision of display product has provided us as a supplier with all we could ask for.
Joanne Greenwood, North Yorkshire
An ode to my lovely new bathroom radiator
A helpful young chap knocked at my door today
To deliver my radiator, of which I must say
Has thrilled me, the manufacturing quality superb
Purchased to keep toasty whilst soaking in my tub
I’m delighted with the colour RAL6019
The pale green restful & calming…..simply divine
So thank you so much from my Hubby and me
To the German engineers, Carole, and all at EHC
Mr Thomas, ‘X’ Council, Lincolnshire
I have recently received a call from the Housing Officer on behalf of the residents of x Court, wanting to pass her thanks on to Kevin.
She informed me that he has been extremely helpful throughout the whole process of the Total Care Package from start to finish and even afterwards.
Once again many thanks from the residents and from myself.
Mrs J McCrossan
Please don’t take this to be condescending in any way but it was so refreshing to deal with someone who was efficient and willing to help especially when I really didn’t know what I was needing. Many thanks.