According to the regulator, the reduction in the price cap from £1,126 to £1,042 for default bill payers and £1,164 to £1,070 for prepayment meter customers will ensure 15 million households continue to pay a fair price for energy.
Around 11 million of these customers are on a default tariff, while four million are on prepayment metres – accounting for more than half of the population, Ofgem said.
Despite this news, a warning has been issued that millions are still overpaying when it comes to their tariff.
Guy Anker, deputy editor of MoneySavingExpert.com, said: “It’s important this price cut doesn’t lull people into a false sense of security that they’re paying a good price for their energy.
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