UK Energy Price Cap to Fall 8% in April, Predicted to Save Households £138 Per Year
Great Britain's household energy price cap is set for its biggest reduction since September last year, with forecasts indicating that it will fall by 8%. This decrease is expected to amount to a saving of approximately £138 per year for the average dual-fuel bill, taking the annual cost down to £1,620. The forecast is attributed to Cornwall Insight, a consultancy that tracks energy market trends.
The reduction in the price cap comes after the autumn budget shifted some charges to general taxation. This change will take pressure off households while still allowing the government to fund initiatives aimed at reducing energy costs. However, taxpayers are expected to bear some of the cost through increased funding for clean power generation and grid upgrades.
According to estimates, the Labour government aims to cut £300 from domestic bills by 2030, partly through increasing clean power generation and shifting policy costs into general taxation. The chancellor has announced that household energy bills will fall by an average of £154 per year from April as a result of two changes: ending the energy company obligation scheme and reducing contributions to the renewables obligation scheme.
However, households can expect higher bills for grid upgrades worth £28 billion, with estimates suggesting this could add £108 per year to their bills by 2031. The government plans to announce incentives for low-carbon technology in homes in the new year as part of its £13 billion warm homes plan.
Industry sources have welcomed the move but emphasized that more needs to be done to reduce electricity costs versus gas. The government has also announced a framework for applying levies in the future, with industry leaders pushing for a shift away from piling costs on bills and moving them onto general taxation instead.
Experts acknowledge that while these measures are a step towards reducing energy costs, there is still more work to be done. Cornwall Insight's principal consultant, Craig Lowrey, noted that costs are not disappearing but rather shifting. While the reduction in the price cap will ease pressure on households and policymakers, it is essential to address the long-term challenges facing the energy sector.
Great Britain's household energy price cap is set for its biggest reduction since September last year, with forecasts indicating that it will fall by 8%. This decrease is expected to amount to a saving of approximately £138 per year for the average dual-fuel bill, taking the annual cost down to £1,620. The forecast is attributed to Cornwall Insight, a consultancy that tracks energy market trends.
The reduction in the price cap comes after the autumn budget shifted some charges to general taxation. This change will take pressure off households while still allowing the government to fund initiatives aimed at reducing energy costs. However, taxpayers are expected to bear some of the cost through increased funding for clean power generation and grid upgrades.
According to estimates, the Labour government aims to cut £300 from domestic bills by 2030, partly through increasing clean power generation and shifting policy costs into general taxation. The chancellor has announced that household energy bills will fall by an average of £154 per year from April as a result of two changes: ending the energy company obligation scheme and reducing contributions to the renewables obligation scheme.
However, households can expect higher bills for grid upgrades worth £28 billion, with estimates suggesting this could add £108 per year to their bills by 2031. The government plans to announce incentives for low-carbon technology in homes in the new year as part of its £13 billion warm homes plan.
Industry sources have welcomed the move but emphasized that more needs to be done to reduce electricity costs versus gas. The government has also announced a framework for applying levies in the future, with industry leaders pushing for a shift away from piling costs on bills and moving them onto general taxation instead.
Experts acknowledge that while these measures are a step towards reducing energy costs, there is still more work to be done. Cornwall Insight's principal consultant, Craig Lowrey, noted that costs are not disappearing but rather shifting. While the reduction in the price cap will ease pressure on households and policymakers, it is essential to address the long-term challenges facing the energy sector.
think about it £138 per year might seem like a lot but what's that really gonna do for anyone? its like they're just putting band aids on a bullet wound 
anyway, its not like this is a bad thing or anything, the gov is just trying to balance the books 
but honestly, who are we kidding, energy prices are never gonna come down, its all just a game of musical chairs at this point 
. But for real though, 8% down from last September? That's some nice news! Guess all those protests about price caps paying off (no pun intended). Still, who knows, maybe our electricity bills will be as reliable as my Wi-Fi connection 
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just saw the news about UK energy prices fallin 8% in april... think its a good start tho 
average ppl can expect to save £138 per year thats def a win. but gotta wonder what other hidden costs are gonna pop up 
and ill be keepin an eye out for those grid upgrade bills addin £108 to our annual energy bills by 2031 
that sounds like a bit of a financial stretch 
still hopeful tho that gov's warm homes plan will bring some long term relief 
just got the news about UK energy prices 
the thing is, though, these changes are just a step towards reducing energy costs... there's still more work to be done 
! That's like, a nice chunk of change for us Brits. I mean, £138 less per year is no joke – it's like an extra £12 a month, which can add up quickly 
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. And don't even get me started on the £28 billion for grid upgrades... that's like, a lot of dosh 
! Now, let's hope they keep working on reducing those electricity costs versus gas. And hey, who knows? Maybe we'll even see some sweet incentives for low-carbon tech in homes by next year 
️ and who knows how much more our bills are gonna go up. plus, the government is still finding ways to make us pay for it all through taxes 
It's like they're trying to balance a seesaw here - reducing one thing might mean increasing another... or at least, that's what it seems like 
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. But let's be real, this isn't just a one-time fix, it's a long-term plan. The Labour government wants to cut £300 from domestic bills by 2030 and I'm all for it 
. An extra £108 per year on top of what we already see is a lot to ask. And what's up with the renewables obligation scheme? It feels like they're just passing the buck 
. The industry needs to step up its game and find ways to make renewable energy more affordable 
. It's about time we see some real savings come through - £138 per year is no joke, especially for those struggling to make ends meet 
cant wait for more updates on this! 
. Still, I guess it's a step in the right direction and I'm all for incentives for low-carbon tech 
. Still, this price cap drop is a win-win and I'm all about it