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Gas and electricity bills will be slashed by up to £80 a year

Gas and electricity bills will be slashed by up to £80 a year

Gas and electricity bills will be slashed by up to £80 a year when watchdogs cut energy price cap today

  • Typical annual gas and electricity bills will be reduced by up to £80 a year 
  • British Gas, SSE, EDF, Eon, Npower and Scottish power forced to cut their costs 
  • A gas glut has seen British and Dutch gas prices halve since September 

By Sean Poulter for the Daily Mail

Published: 20:59 EDT, 6 August 2019 | Updated: 20:59 EDT, 6 August 2019

Watchdogs will cut the energy price cap today, reducing typical annual gas and electricity bills by up to £80 a year.

However, experts warn that the new tariff, which could fall to £1,174 a year for the average user, will still leave millions paying much more than they need to.

The cap was introduced in January to protect customers struggling on a rip-off standard variable tariff (SVT).

Watchdogs will cut the energy price cap today, reducing typical annual gas and electricity bills by up to £80 a year

The measure forced the Big Six – British Gas, SSE, EDF, Eon, Npower and Scottish Power – to cut the cost of energy for the 15 million households on an SVT.

But they could have saved more by moving to a fixed rate deal. 

The cheapest such dual fuel tariff costs around £951, a saving of more than £200 on the lower cap to be set this morning.

The regulator Ofgem decides the maximum price per unit based on changes in the wholesale cost. The lower figure will come in on October 1 and last all winter.

Energy industry watchers say falls in wholesale prices in recent months should – in theory – lead to a fall in the Ofgem cap of £60-£80.

The measure forced the Big Six – British Gas, SSE, EDF, Eon, Npower and Scottish Power – to cut the cost of energy for the 15 million households on a standard variable tariff

A gas glut has seen British and Dutch gas prices halve since September, after a liquefied natural gas influx shipped by tanker, and gas from Russia and the US.

Lily Green from price comparison site Look After My Bills says that 11 energy suppliers will have to cut tariffs and that customers have been paying a loyalty penalty of hundreds of pounds a year.

‘The price drop should have come a lot sooner… You can’t trust suppliers to lower your energy bill,’ she said. 

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