UK energy bills to fall again

LONDON

The price cap on energy bills for most British households is to fall again, regulator Ofgem announced on Aug. 25, offering mild relief amid the ongoing cost-of-living crisis.

Bills will decline from October thanks to a further fall in wholesale energy prices, which had soared in the wake of the post-COVID recovery and the war in Ukraine.

The cap will fall to 1,923 pounds ($2,419) per year from 2,074 pounds for an average household consuming electricity and gas, Ofgem said.

At the height of last winter, it had reached 4,279 pounds.

"The change will bring the average dual-fuel energy bill below 2,000 pounds a year for the first time since April 2022, saving households an average of 151 ponds on the previous quarter," Ofgem said in a statement.

Energy Minister Grant Shapps said it was "encouraging" that energy bills were coming down, calling it "another milestone as we deliver on our promise to halve inflation."

Inflation in the U.K. eased sharply in July to 6.8 percent year-on-year from 7.9 percent in June, mainly thanks to lower energy prices, but it remains the highest in the G7.

While prices are falling overall, several massive government programs subsidizing households faced with sky-high energy prices have since come to an end.