• 7 months ago
Martin Lewis explains what Ofgem energy price cap drop means for householdsGood Morning Britain, ITV
Transcript
00:00Ofgem, the energy regulator, has announced that on the 1st of April, the energy price
00:04cap will be dropping by an average 7%.
00:07Now the price cap is what dictates the amount that homes on a standard tariff are on.
00:13Now if you're not on a fixed and you're not on a special tariff and you're not sure what
00:16tariff you're on, you're on the energy price cap.
00:1980% of homes in England, Scotland, and Wales are on the price cap.
00:22It doesn't apply to Northern Ireland.
00:25So that's most people watching are on a price cap tariff.
00:29And while it dictates the maximum that firms can charge on their standard rates, they all
00:34charge the maximum.
00:35So it effectively dictates the price.
00:38On the 1st of July, on average, the price will drop 7%.
00:41Now I don't like using the typical use figure because no household is really typical use.
00:45So I explain it like this.
00:47For every £100 you pay on gas and electricity now, you will pay roughly £93 on the 1st
00:57of July and that price cap lasts three months.
01:00So £7 cheaper per £100.

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