Millions of households are to save an average of £85 a year from this autumn as energy prices slump, a leading supplier predicts. A fall in the wholesale price of gas and electricity since the turn of the year is expected to reduce standard tariffs by about 7.5 per cent in October. Ofgem, the industry regulator, will confirm in the coming days how a cap on default tariff prices, introduced in January last year, will be shifted to account for the costs faced by suppliers. Eon, which supplies more than six million households, said that a dramatic fall in demand for energy during Covid-19 lockdowns in countries across the world had slashed wholesale prices. The company estimates that the lower cap will reduce bills by the equivalent of almost four weeks’ energy use for an average home. The change would affect about 11 million households.
Times 3rd Aug 2020 read more »