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Energy Price Cap to Fall From April

Vicky Parry 23rd Feb 2024 No Comments

Reading Time: 2 minutes

News broke today that come April, the energy price cap will fall 12.3% to £1,690. This means there will be a fall of £238 for typical dual fuel household

Whilst this fall is a very welcome relief to many households, and is a step in the right direction. Bills are still way above what they were three years ago when the price cap stood at £1,138.

 Jasmine Birtles, CEO of MoneyMagpie says

“It’s great to see prices come down a little at least, and they are set to lower even more in the summer. So if you’re looking to switch to a cheaper rate at another company, I would wait a bit as this price cap isn’t coming in until April and then rates should come down even further a few months later. Apparently they may go up again in October. So keep an eye on what the energy companies announce and play the wait-and-see game for a while until there are clear signs that prices have dropped and there are some good fixed deals around. At MoneyMagpie we will let you know when we think the prices have dropped as far as they’re going to and we will guide you to find the best deals for you.”

Danni Hewson, head of financial analysis at AJ Bell, comments on the latest Ofgem energy price cap:

“Twenty pounds a month isn’t a huge amount in the grand scheme of things but in the words of a popular supermarket advert, every little helps.

“Households have been battered by surging energy costs over the past couple of years and as government support fully comes to an end there will be many people still terrified when temperatures outside plummet. Whilst a typical bill will fall to the lowest level in two years the price of keeping the lights on and rooms warm is still uncomfortably high.

“Consumer champions used to urge us all to continuously shift supplier, but those deals have been few and far between over the past couple of years and many households are nervous about locking into a deal that might end up costing them dearly if the price cap keeps falling.

“A ban on acquisition tariffs has been extended which is likely to limit competition but also prevent companies getting into the kind of hot water which saw a slew of businesses go bust.

“There are big questions to be answered about the entire energy system which has seen many people priced out of servicing a basic need.

“Inequity must be stamped out and huge levels of debt weighing down the system have to be clawed back, even if there will undoubtedly be debate around where that money should come from. The system needs to be rebuilt, but do we simply want to replace like for like or is there a better option?”

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Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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