The energy regulator Ofgem has announced a slight decrease in its price cap, leading to renewed calls for greater energy efficiency measures. The average dual-fuel energy bill is expected to fall below £2,000 a year for the first time since April 2022. The price cap, effective from October 1 to December 31, will be set at an annual level of £1,923 for a dual fuel household paying by direct debit, a decrease of £151 compared to the previous cap of £2,074. Ofgem has also lowered the prepayment cap from £2,077 to £1,949 and the standard credit ceiling from £2,211 to £2,052.

This downward trend in the price cap follows a peak at £4,279 due to the impact of Russia's invasion of Ukraine and global energy market turmoil. Although prices have stabilized since then, they remain higher than before the energy crisis of 2021. Experts caution that the energy market remains volatile, with potential for prices to rise again during the winter.

Despite the falling price cap, concerns about fuel poverty persist. An analysis by the Energy and Climate Intelligence Unit (ECIU) reveals that homes with an Energy Performance Certificate (EPC) rating of band F could face bills £720 higher than those with a band C rating. The average UK home with an EPC rating of band D is projected to pay £275 more for gas and electricity this winter compared to a band C-rated home.

Experts are calling for enhanced energy efficiency policies and government funding to address the issue. The ECIU emphasizes the importance of insulating homes to protect against future gas price spikes and investing in British renewables to reduce reliance on expensive gas imports.

E3G, a climate change think tank, accuses the government of missing opportunities to permanently reduce the UK's exposure to volatile international gas markets. The Energy Company Obligation, a key fuel poverty alleviation scheme, is falling short in delivering energy-saving measures to eligible homes. E3G urges the government to prioritize energy efficiency at scale to help fuel poor households.

In response to Ofgem's price cap update, Mike Thornton, Chief Executive at Energy Saving Trust, stresses that addressing the root causes of high energy prices, such as over-reliance on gas and poor building efficiency, is essential to achieving long-term energy affordability. He advocates for a national retrofit program supported by incentives and personalized advice to reduce energy demand and lower bills.