Feb 23 Reuters Most British household energy bills will fall from April after regulator Ofgem cut its domestic price cap to its lowest in more than two years.

The drop, prompted by lower wholesale energy prices, will provide some respite for households struggling with a cost of living crisis, while also helping to curb inflation.

Ofgem39;s new cap of 1,690 pounds 2,139 a year for average use of electricity and gas is down 238 pounds, or 12.3, from the previous cap of 1,928 pounds.

This will see energy prices reach their lowest level since Russias invasion of Ukraine in February 2022, Ofgem said.

Ofgem said that while the drop was good news for consumers there were still challenges in the energy market, with a record 3.1 billion pounds in unpaid bills.

The watchdog has allowed suppliers to include a temporary charge equivalent to 28 pounds a year to help them to cover consumer bad debt.

But longer term, we need to think about what more can be done for those who simply cannot afford to pay their energy bills even as prices fall, said Ofgem CEO Jonathan Brearley.

Campaign group National Energy Action said that six million households would remain in fuel poverty despite the reduced price cap. Fuel poverty is defined as being unable to afford to heat homes to temperatures needed to stay warm and healthy.

In a separate announcement, the government said it would gather views on how energy deals can be made more flexible to enable customers to pay less if using…