What is the energy price cap?
The price cap on energy bills was introduced in January 2019 as a way to prevent households being ripped off by their energy suppliers.
It is currently £3,280 a year on average.
But households only pay £2,500 a year on average, as the price is overruled by the energy price guarantee, which is cheaper.
However, this will fall to £2,074 from today when the price guarantee finishes and the energy price cap comes into force.
Energy analysts say regulator Ofgem’s yearly price cap will drop to £1,978 from October.
Cornwall Insight, which has made accurate predictions throughout the energy crisis, has forecast the October drop. But it expects energy bills to rise again from next January to £2,004.
It affects around 29million customers on default or variable tariffs, according to the regulator Ofgem.
The cap is calculated based on the wholesale price of gas and electricity.
It also includes allowances for tax, charges paid to the energy networks, green levies and social payments.
