The energy price cap is falling from 1 April, energy regulator Ofgem has announced today.
The fall in energy bills from 1 April is largely a result of the UK Government’s November Budget, which pledged a £150 saving on bills for the typical household. This was due to the decision to end the GB-wide energy saving programme, the Energy Company Obligation (ECO), and moving the cost of the Renewables Obligation onto general taxation.
While the decision to stop ECO will reduce energy bills, National Energy Action says this has reduced funding towards fuel poverty alleviation schemes by over £1.5 billion per year.
National Energy Action Director of Policy Peter Smith says: ‘Any fall in sky-high energy bills is welcome. Hopefully, it can take a little pressure off households who have been struggling in cold, unhealthy homes this winter.
‘But the new level is still far from affordable. Those on the lowest incomes in the leakiest homes will face deep debt and will still struggle to stay warm and well at home.
‘We need to make sure this cut to bills isn’t just offering short-term relief at the expense of long-term action against fuel poverty. The government’s Warm Homes Plan must be transformational, making homes warmer and positively changing the lives of the most vulnerable households for the better.’
ENDS
Notes to editors
- National Energy Action (NEA), is the national fuel poverty charity, working across England, Wales and Northern Ireland, to improve the lives of people in fuel poverty. We directly support people with energy and income maximisation advice, and we advocate on issues such as the current energy crisis and the need to improve the energy efficiency of our homes. See: www.nea.org.uk.
- Ofgem estimates the typical household in England, Scotland and Wales uses 2,700 kWh of electricity and 11,500 kWh of gas in a year.
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