British Gas, OVO, Octopus, EDF customers could earn £530 with energy cap trick

UK householders could turn the latest price cap change into an account boost of £530 with a savvy savings move. Customers of British Gas, OVO, Octopus, EDF and other suppliers are facing lower gas and electricity charges from July with average bills to fall by 7 per cent - and some wise thinking could give them even more cash in the bank.

Ofgem is dropping its price cap from the current £1,690 a year for a typical dual-fuel household in England, Scotland and Wales to £1,568, which is £122 lower. It's also just over £500 less than the cap in July last year, when it was £2,074.

The price cap does not limit a household's total bills, as people still pay for each unit of gas and electricity they use. The figures provided are just for an average-use family. But there's a chance to maximise the amount you'll save, as finance experts have pointed out.

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Christie Cook, managing director of retail at Hodge, said: "The fall in energy prices this July will come as welcome news for millions of households across the UK, especially after the hikes we saw last year, seeing annual costs of £1,976.

"Although only a 7 per cent decrease, on average this amounts to a yearly saving of £506. However, this could be an opportunity to maximise your savings. You can do this by putting aside this 'extra' cash in an ISA, which are currently seeing rates of around 4.59 per cent. This means you could earn up to an extra £23."

This will produce a balance of £529 once the interest is added on. Ms Cook added: "Our research shows that 80 per cent of Brits are most concerned about the energy crisis, with a further 67 per cent reducing their electricity usage for financial reasons."

Ofgem chief executive Jonathan Brearley told the Energy Security and Net Zero Committee that prices "are still significantly higher than they were before, and when we look further out our best estimate is that prices are going to stay high and volatile over time."

Mike Thornton, chief executive of the Energy Saving Trust, said: "Today's confirmation that energy prices are coming down for the next quarter is very welcome. However, no one should take this lower price cap as a sign of stability.

"Forecasts show that energy prices are set to rise again this autumn and will be staying high overall for the next decade. After the election, the incoming UK government must prioritise policies that support people to use less energy and install cost-effective energy efficiency improvements in their homes. This will be fundamental to bringing down energy bills, reducing carbon emissions and guaranteeing our energy security for the long term."

Ofgem is currently reviewing the price cap and looking at how it is calculated. This could include changes to standing charges, which are fixed daily fees that cover the cost of supply connections.

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