Skip to main content
Households urged not to be fooled by £150 energy cut promise
A general view of a central heating thermostat

HOUSEHOLDS should focus on unit cost changes rather than the headline “average energy bill” cut, campaigners urged, after the government promised an average £150 reduction from April.

Chancellor Rachel Reeves announced in November that scrapping the Tory-era Energy Company Obligation scheme would cut the average bill by the sum.

Latest forecasts suggest Ofgem is expected to reduce the price cap by £117 to £1,641 for a typical household on Wednesday.

But customers have been warned not to expect a straight £150 discount, with the cut depending on household size, type and energy use, applied primarily through lower electricity unit prices.

Cornwall Insight said network charge increases have offset some savings, while gas prices remain volatile due to “geopolitical factors.”

End Fuel Poverty Coalition co-ordinator Simon Francis urged households to note the changes in unit costs and standing charges, rather than focus on the headline figure.

He said: “As well as setting the price cap, Ofgem should play a greater role in ensuring that the tariffs reaching the market are fair and don’t discriminate against specific customer groups.

“Sadly the responsibility currently falls to households to pay careful attention to any changes in their unit costs and standing charges.”

The 95th Anniversary Appeal
Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.