Energy bills to remain high despite price cap cut
Experts have warned that energy bills will remain high despite a price cut scheduled for July. The energy price cap, set by regulators for England, Scotland and Wales, will reduce a typical household’s gas and electricity costs by £426 per year, bringing the total to £2,074 annually. This marks the end of government assistance that capped bills at £2,500.
The experts are suggesting that despite the price cap cut, prices will not significantly decrease for the remainder of the year and may even rise over the winter months. MoneySavingExpert.com founder Martin Lewis said that by the end of this year, people will be paying similar amounts to last winter, as the £400 government discount will no longer be available.
The forecast indicates that higher and more volatile prices will persist until the end of the decade impacting domestic bills. By the 2030s prices may start to decline if investments in renewable energy continues.