All of the so-called "big six" energy suppliers have announced they will drop their prices in accordance with Ofgem's energy price cap.
British Gas, E.ON, EDF Energy, npower, SSE and ScottishPower will all reduce the average cost of their standard variable tariffs for existing customers on 1 April. Households on these plans will see their energy bills drop by an average of £17 per year.
All energy suppliers will need to comply with the new price cap by reducing the average cost of their standard tariff to match or fall below the new rate when it comes into effect on 1 April.
Ofgem, the energy market regulator, introduced a cap on standard variable tariffs in 2019, and reviews the cap rate twice a year. In February, the cap rate was reduced by £17 to £1,162 - meaning this is the most that suppliers can charge for average usage for customers on its standard variable or default tariff.
The new rate will come into effect on 1 April and is set to be reviewed again in August, to come into effect in October this year.
The price cap applies to energy suppliers' standard variable or default tariffs, which are typically the most expensive type of energy plan. Many households are automatically placed on these tariffs if they don't switch after their fixed deal ends.
Despite the fact that suppliers are cutting prices on these tariffs by around £17, many households could save much more - with many fixed energy plans more than £300 cheaper than the new cap rate.
You can find out how much more you could save by moving away from your standard tariff using our interactive tool:
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