The new energy price cap, announced by the energy regulator Ofgem, for the period 1 July -30 September means that energy bills  will fall by £122 for a typical dual fuel household, paying by direct debit to £1568 per year.

 But what exactly is a a typical household?

Your energy bill depends on the total  amount of gas and electricity you use, and how you pay. The type of property you live in, how energy efficient it is and how many people live in it are also key factors!

The ‘typical household’ that is referred to by Ofgem is one that uses 11,500 kWh of gas and 2,700 kWh of electricity per year with a dual fuel contract paid by direct debit!

Using the new energy price cap rates that came in on 1 July here are a few examples of different households/energy users and their approximate annual energy bills:

• Flat/1 bed house/low user  approx yearly energy bill – £1,148: (1-2 people using  7,800 kWh of gas & 1,800 kWh of electricity)
• 2-3 bed house/medium user – approx yearly energy bill – £1,568: (2-3 people using  11,500 kWh of gas & 2,700 kWh of electricity)
• 4+ bed house/high user – approx yearly energy bill – £2182: (4-5 people using  17,000 kWh of gas & 4,100 kWh of electricity)

If you pay by on receipt of your bill (every 3 months) then you will pay more than those paying by direct debit

From 1 July households with pre-payment meters will pay slightly less than households paying by  direct debit – a  typical annual bill  will be £1522!

Sources: BBC & Ofgem

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