Energy bills: Government launches new package of measures to help ‘slash’ costs | Personal Finance | Finance

The Government is launching a new package of measures to help families save on energy costs and access cheaper deals.

This follows recent figures that prices are set to fall to their lowest level since the start of the energy crisis two years ago.

Energy regulator Ofgem confirmed the price cap – the maximum amount a typical household pays for gas and electricity – will fall by £238 on average from April 1.

Energy Security Secretary Claire Coutinho has welcomed the fall in prices and has announced a series of measures the Government will introduce to “slash bills” further.

Long-term measures include examining how standard energy deals should work to pass on the cheapest electricity costs, plus £10million in funding for companies to test new technologies and tariffs with their customers, to make the most of cheap, low-carbon power.

A new scheme to help customers repair or replace smart meter in-home displays after the one-year warranty is also being launched.

Eight suppliers, covering 60 percent of the market, have signed up so far, including E, E.ON, Good Energy, Octopus Energy, Ovo, Scottish Power, Utilita and Utility Warehouse.

Smart meters provide an important service in helping families, including older and vulnerable people, keep track of their energy use. Extending support is designed to help customers continue to “make the most of the savings” smart meters can offer as the price cap falls and competitive deals return to the market.

Ms Coutinho said Ofgem’s recent announcement that energy bills will fall by £238 on average will be “welcome news” for families across the country.

She said: “This means households will be paying the lowest cost for their energy since Putin’s illegal invasion of Ukraine two years ago.

“My mission is to cut costs and get bills even lower so that families can spend their money on the things that matter most to them.”

Subsequently, Ms Coutinho said: “We’re announcing further measures to slash bills for families and improve access to cheaper, flexible deals.”

The Government is also putting out a call for evidence on standard energy tariffs, which customers are rolled onto at the end of fixed-term contracts, resulting in the vast majority paying a flat rate throughout the day and a potentially higher price than they need to.

The Government said it is seeking views on making these tariffs more flexible, so families pay less if they use electricity at a time of day when prices are lower while protecting those who aren’t suited to a flexible tariff.

Amanda Solloway, minister for energy affordability and skills said: “Households will soon see their energy bill fall to the lowest level in two years. And to bring them down even further, we want more families to be able to benefit from the real savings that smart, flexible energy deals can offer.

“Over half of British homes already have the potential to access cheap off-peak power through a smart meter but we can all fall victim to not having time to shop around for a good energy rate.

“These new measures will ensure people can access these savings even if they’re on the standard basic tariff, so even the busiest families don’t miss out on cheaper bills.”