Energy bills could fall from April after Government promised cut

Ofgem is expected to announce a reduction to the energy price cap on April 1 after the Government said households would receive an average £150 cut when it ends the Energy Company Obligation; actual savings will vary by household.

Ministers have said households will receive an average £150 reduction in energy costs after the Government announced plans to scrap the Energy Company Obligation (ECO). Ofgem is due to make a formal announcement on the energy price cap on April 1. Forecasts from industry analysts suggest the cap could fall, with one estimate pointing to a reduction of about £117 to around £1,641 a year for a typical dual-fuel household. Officials and industry groups note that the change is expected mostly as a lower electricity unit rate and that other charges will affect final bills. Key facts: - The Government announced an average £150 cut tied to ending the Energy Company Obligation (ECO) scheme. - Ofgem is scheduled to announce the new energy price cap level on April 1; some forecasts indicate a drop of roughly £117 to about £1,641 for a typical dual-fuel household. - Industry bodies and analysts warn that individual household savings will vary according to energy usage, unit rates, network charges and wholesale costs. Summary: The policy change is expected to lower the regulated price cap and could reduce annual bills for many households, but the precise effect for any individual household is undetermined at this time. Ofgem's announcement on April 1 will provide the updated cap level and suppliers are likely to communicate how unit-rate changes apply to customers.