It is the news we've all been eagerly awaiting, energy prices are finally set to go down from July after the new Ofgem energy price cap announcement.
This morning, energy regulator Ofgem announced that the energy price cap will be dropping to an annual level of £2,074 for a dual-fuel household paying by direct debit based on typical consumption. This means that the new price cap will fall below the Government's Energy Price Guarantee which caps the typical bill at £2,500.
The news is the first time since the energy crisis started that price drops will be passed on to customers on their supplier's default tariff.
'After a difficult winter for consumers, it is encouraging to see signs that the market is stabilising and prices are moving in the right direction. People should start seeing cheaper energy bills from the start of July, and that is a welcome step towards lower costs,' Ofgem CEO Jonathan Brearley said in a statement.
However, while the news of energy bills dropping by £426 from July is welcome news, it still is not a return to pre-energy price crisis levels.
Ideal Home's Money Editor Sarah Handley says: 'A drop in energy prices will be welcomed after months and months of highest ever prices. But while the new cap is more than £400 cheaper than the price guarantee, prices are still much higher than they were before the energy crisis began. For families who are struggling to afford their energy bills, things will still be tough, so it's really important to keep your energy use as low as possible to keep your bills under control.'
Ofgem acknowledged in the quarterly announcement that the new energy price cap is by no means a sign that we're out of crisis territory. 'We know people are still finding it hard, the cost-of-living crisis continues and these bills will still be troubling many people up and down the country,' Jonathan added. 'Where people are struggling, we urge them to contact their supplier who will be able to offer a range of support, such as payment plans or access to hardship funds.
'In the medium term, we’re unlikely to see prices return to the levels we saw before the energy crisis, and therefore we believe that it is imperative that government, Ofgem, consumer groups and the wider industry work together to support vulnerable groups.'
Get the Ideal Home Newsletter
Sign up to our newsletter for style and decor inspiration, house makeovers, project advice and more.
Rebecca Knight has been the Deputy Editor on the Ideal Home Website since 2022. She graduated with a Masters degree in magazine journalism from City, University of London in 2018, before starting her journalism career as a staff writer on women's weekly magazines. She fell into the world of homes and interiors after joining the Ideal Home website team in 2019 as a Digital Writer. In 2020 she moved into position of Homes News Editor working across Homes & Gardens, LivingEtc, Real Homes, Gardeningetc and Ideal Home covering everything from the latest viral cleaning hack to the next big interior trend.
Katie Piper's glam Christmas tree uses this smart faux foliage technique for a stunning maximalist look
Katie Piper's glam Christmas tree is festive goals, quite frankly
By Kayleigh Dray
This viral IKEA mirror hack perfectly fakes an expensive-looking heavy mirror – and for less than £50
Recreate the luxurious look of a heavy mirror with this easy IKEA mirror hack
By Sara Hesikova
Kimberly Walsh's bold and on-trend glassware is the key to an 'elegant and cohesive' tablescape, say experts
Add a touch of unexpected vibrancy to the Christmas dinner table
By Jullia Joson