Households will pay £2,074 on average annual energy bills from 1 July under regulator Ofgem’s energy price cap.

This is a 17% saving based on the Government’s Energy Price Guarantee (£2,500) which superseded the price cap as wholesale costs soared following the Russian invasion of Ukraine.

While households will be relieved to see energy bills fall, this figure is still substantially higher than the £1,042 price cap set in the winter of 2020/21.

Further, the energy price cap isn’t the maximum bill you will pay over the year as it’s an average figure based on a dual fuel household paying by direct debit for typical consumption. Instead, the price cap limits the amount providers can charge for a unit of gas and electricity.

Below, Uswitch compares both under the Energy Price Guarantee and the energy price cap:

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Submit meter readings

Before the change – either on or just before 1 July – households without a smart meter should note down and submit meter readings to the provider.

This is to make sure your bills are accurate and that your supplier charged the correct amount for the gas and electricity you use pre- and post- 1 July.

According to Uswitch energy expert Ben Gallizzi, billpayers should also check monthly direct debit payments to ensure it reflects your actual use.

“If you feel you have too much credit in your account after your most recent review, you may want to ask your supplier to return some of the excess,” Gallizzi said.

And despite the fall in these costs, inflation and food prices still remain high.

If you are struggling financially, contact your supplier to see if its offers a support fund, or speak to National Debtline for free advice on your options.