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Good news on the energy cost front for entrepreneurs.
Good news on energy costs for entrepreneurs who will pay less by October.
Rising energy costs have nailed many businesses over the last eighteen months as the war in Ukraine sent prices soaring.
Ofgem cuts its price cap
Now millions across the UK of British households will have cheaper energy bills from October after British energy markets regulator Ofgem cut its price cap again to reflect a further fall in wholesale power and gas prices.
Ofgem lowered its price cap on household energy bills by about 7% from Oct 1 to £1,923 pounds a year for a typical dual-fuel household, Reuters reported.
The lowest level since October 2021
The drop will save households an average of 151 pounds compared with the previous quarter, Ofgem said. The drop also represents the lowest level since October 2021 and reflects further falls in wholesale energy prices as the market stabilises and suppliers return to a healthier financial position after four years of losses, it added.
Wholesale power and gas prices hit record highs in Britain and Europe last year after Russia’s invasion of Ukraine cut gas supplies.
Price volatility remains
Although wholesale gas and power prices have fallen by about 85% and 80% respectively since record highs in the first quarter of last year, there is still price volatility and the price cap remains well above the average before the energy crisis took hold.
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