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Fuel Bank Foundation responds to Ofgem Energy Price Cap announcement

May 25, 2023

Fuel Bank Foundation responds to Ofgem Energy Price Cap announcement Featured Image

Today, energy regulator Ofgem announced that the energy price cap will be set at £2,074 from 1 July.

According to Ofgem, the new price cap represents both a reduction in last quarter’s cap, and also a reduction in how much customers will pay on their bills. Since October 2022, consumers have been supported by the Government’s Energy Price Guarantee, which caps the typical bill at £2,500.

But while the price cap has dropped from its winter peak, it remains well above the pre-2021 average.

“Today’s announcement by Ofgem that the energy price cap will fall in July to £2,074 will bring little comfort to households already struggling to pay their energy bills."
Matthew Cole, Head of Fuel Bank Foundation

He continued, “Energy prices are still at an historically high level, albeit they are slowly coming down. For many people, although the price cap has reduced, they will be paying roughly the same as they were over winter, when you factor in the £400 Energy Bills Support Scheme (EBSS), which was subsidising bills but has now finished and is unlikely to be provided again.

“For prepayment meter users, the EBSS vouchers were a vital financial lifeline, and we urge anyone who hasn’t yet redeemed them to do so immediately before the June 30th deadline.

“If after the deadline there are unredeemed vouchers, and every effort has been made to ensure those who are eligible receive them, the value of the unclaimed prepayment meter vouchers should be donated to charities that support people struggling to pay for energy, such as ourselves, and not returned to the Treasury.”