Household energy bills will fall by around £425 a year after Ofgem dropped its energy price cap, making gas and electricity cheaper across Britain.

The price cap has rocketed from £1,162 a year for a typical household in August 2021 to a peak of £4,279 last year following Russia's invasion of Ukraine both pushing up wholesale prices.

The energy regulator today reduced its price cap from £3,280 to £2,074 from July 1.

However, households have already been partly shielded from the most recent rise in prices by the Government's Energy Price Guarantee, which limited annual energy costs to £2,500 for the average household - below Ofgem's price cap.

It means the effect on typical annual energy bills will be a reduction of £426 from £2,500 to £2,074.

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