Average household energy bills in 2020 dropped to the lowest level since 2017.
That’s according to new research by Compare the Market, which suggests energy bills dropped by £172 last year, compared to 2019.
That could be a result of the energy cap, introduced by Ofgem in 2019. A few months ago the government regulator announced an extension of the energy price cap until the end of 2021.
The research suggests this drop may be due to suppliers passing on some of the savings from the drop in wholesale energy prices and as a result of reduced demand for energy overall during the two national lockdowns, despite more people staying at home.
Ursula Gibbs, Director at Compare the Market, said: “The fall in annual bills is a rare piece of good news, following a bruising twelve months for household finances.
“However, our Household Financial Confidence Tracker shows that nearly a fifth of UK households think they will struggle to meet the demands of their household bills in the coming weeks.”