From July, the average energy cost will decrease by £426 annually

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The typical energy bill could drop by up to £426 per year from July 2020, following the implementation of the new price cap. The energy price cap, which was first proposed by Ofgem in July 2019, will see the cap of the default tariff for all UK households fall from £1,254 per year to £1,179 per year.

This will result in an estimated saving of £75 annually for the average household. The new price cap is expected to benefit almost 11 million energy customers who are currently on default tariffs. The new cap was introduced to promote competition among energy companies and to make their charges more transparent for consumers.