Ofgem has revealed that the average energy bill is to go down £426 a year as the price cap falls £1,206 from July. Commenting on this, Simon Tucker, Global Head of Energy, Utilities & Resources at Infosys Consulting, said:
“The drop in the price cap to £2,074 comes as wholesale energy prices fall. But energy bills are still high, and an end to the energy price guarantee in July removes a cushion for businesses and consumers against higher prices.
“Over summer, the opportunity is for consumers to lock in lower prices – however there’s still a question mark over next winter.
“Issues around supply and demand are still present. We need to reassess what we’re doing with wind and solar, and gas interconnectors, as well as shoring up additional extra natural gas storage while it’s at a lower price and signing up for extra L&G cargos in winter.
“The government needs to use this time wisely – if we can reduce demand by 10%, cut down on energy waste and increase gas supply and storage, this will put us in a far better position to weather the challenges next winter.”
