The Office of Gas and Electricity Markets (Ofgem) have recently announced a decrease in the price caps set to come into effect 1 April.
This cap will mark a 12 per cent decrease in per unit prices, with Ofgem estimating that typical household prices will decrease from £1,928 to £1,690.
Despite the introduction of price caps, energy remains very expensive.
A research brief published by the House of Commons Library found that despite the cap, families nevertheless were on track to spend 59 per cent more on their 2024 gas and electricity bills than in 2019.
The 59 per cent increase in spending has led to renewed calls for the nationalization of energy suppliers.
Increases in energy prices have led to further scrutiny towards oil companies, who have posted record profits over the past year.
Since the COVID-19 pandemic and sanctions on Russian oil exports following their invasion of Ukraine have left the UK households paying inflated bills since mid 2020.
Then prime minister Liz Truss introduced the Energy Price Guarantee, which capped energy prices across the UK, with the government paying the oil companies the difference.
Energy fuel caps limit the price that energy companies can charge per unit to limit concerns over wasteful use.
When the cap was first introduced, it was claimed by Truss that households in Great Britain would save an average of £1,000 a year on their energy bills.
While the price per unit of energy will decrease, Ofgem have also announced slight increases in daily standing charges (a charge that you pay your energy supplier each day to cover fixed costs of providing gas and electricity, regardless of how much energy you use.)
“Grangemouth” by kyz is licensed under CC BY 2.0.