Ofgem, which is the regulator for electricity market in Great Britain (UK), has lowered the energy price cap for the October-December 2023 period by 7% at an annual level of GBP 1,923 (€2,242) for a dual fuel household paying by direct debit based on the current typical domestic consumption values (TDCV) rate. It reflects further falls in wholesale energy prices, which declined by around 10% in the previous quarter, as the market stabilises and suppliers return to a healthier financial position after four years of loss making.
The price cap savings continue the downward trend from the peak of GBP 4,279 (€4,989). However, they still remain significantly above the pre-energy crisis average of 2021, while the market's volatility persists. The energy price cap, which has been in place since January 2019, protects around 29 million customers on default or variable rates.