Martin Lewis explains what Ofgem energy price cap drop means for you

Martin Lewis has explained what the energy price cap drop means for you.

Ofgem announced on Friday 24 May that it has lowered its cap in response to wholesale prices.

“The price cap is what dictates the amount that homes on a standard tariff are on,” Mr Lewis said, adding that 80 per cent of households in England, Scotland and Wales are on it.

“On 1 July, on average, the price will drop 7 per cent.”

Mr Lewis went on to simplify the maths, explaining that for every £100 you pay for gas and electricity now, you will pay roughly £93 from July.

The price cap will last three months.