Proactive Investors -
- FTSE 100 called down 2 points
- Energy price cap to drop 12%
Energy price cap to fall to £1,690
The price cap, which sets a maximum rate per unit that can be charged to customers for their energy use, will fall by 12.3% on the previous quarter from 1 April until 30 June 2024.
This equates to £1,690 per year for an average household paying by direct debit for dual fuel, a drop of £238 year on year.
Households should save around £20 a month under the price cap.
Jonathan Brearley, chief executive of Ofgem, warned there was more to do to ensure fair rates for customers.
“This is good news to see the price cap drop to its lowest level in more than two years – and to see energy bills for the average household drop by £690 since the peak of the crisis – but there are still big issues that we must tackle head-on to ensure we build a system that’s more resilient for the long term and fairer to customers.
Ofgem will allow suppliers a temporary additional payment of £28 per year “to make sure suppliers have sufficient funds to support customers who are struggling”,
The energy price cap was introduced by the government and has been in place since January 2019
Quiet start for Ftse 100
FTSE 100 is set for a quiet start according to the spread bet firms despite another bonanza day for tech stocks on Wall Street.
Early forecasts were for London’s blue-chip index to open more or less unchanged after yesterday’s 22-point gain.
Footsie though is being overshadowed again by the US, where the S&P 500 hit another record and also Japan where stocks too are hitting new highs.
The US was all about Nvidia (NASDAQ:NVDA) yesterday with the chipmaker rocketing 16% and adding US$277 billion to its market value after more blockbuster results.
Nvidia is now within a whisker of being worth US$2 trillion.
In the UK, bank Standard Chartered (LON:STAN) has posted underlying annual profits of US$5.7 billion while Ofgem has cut the energy price cap by 12%.