Millions of households will continue to struggle this summer despite the forecast drop in energy bills in July, according to Fuel Bank Foundation, the national fuel poverty charity.
Next week (Friday 23 May), Ofgem will announce the new energy price cap for the third quarter of the year (July – September), with some industry forecasts suggesting a reduction of up to 9%*.
The price cap, which is based on the cost of each unit of energy, not the total bill, is currently set at £1,849 for the average dual fuel household paying by direct debit. For prepayment meter customers it’s £1,803.
According to Fuel Bank’s own modelling, from July the price cap will fall to £1,707 and £1,661 respectively for direct debit and prepayment meter customers.
Matthew Cole, CEO of Fuel Bank Foundation, said: “The drop in the energy price cap from July may sound like good news, but for many people already struggling to make ends meet, it won’t go far enough. Even in summer, when heating isn’t needed as much, energy is still essential; people need it to cook meals, run a washing machine, stay clean, and keep fridges and medical equipment running. These are basic needs, not luxuries.
“The cost of living is still incredibly high, and many people, especially those who are vulnerable or have low incomes, are dealing with energy debt built up over the last few years of sky-high bills.
“A slight drop in prices won’t fix that. People are still being forced to make tough choices — between topping up the meter or putting food on the table.
“Energy bills remain well above pre-crisis levels, when the average annual cost was around £1,200. With prices set to remain high for the foreseeable future, we need to start thinking of the current cost of energy as a plateau rather than a peak.
