Energy prices are poised to decline once again this winter following Ofgem's announcement of a further reduction in the price cap for the final quarter of 2023.

The adjustment will bring the average annual dual-fuel energy bill below £2,000 for the first time since April 2022, presenting households with an average savings of £151 compared to the previous quarter.

For the period spanning October 1st to December 31st, the cap will be established at an annual rate of £1,923 for a dual fuel household making payments through direct debit, based on the prevailing typical domestic consumption values (TDCV) rate.

This decrease, marking the lowest point since October 2021, is reflective of continued drops in wholesale energy prices. The market's stabilization and the financial recovery of suppliers after four years of losses contribute to this trend.

The current cap is a notable reduction from the peak of £4,279, although it remains significantly above pre-2021 energy crisis averages. It's important to note that the market remains volatile.

Jonathan Brearley, the Chief Executive of Ofgem, is urging energy suppliers to provide comprehensive support to customers throughout the cold months. This plea follows last winter's instances where individuals were compelled to choose between heating and basic sustenance. Local warm hubs were temporarily established to offer aid to those most in need.

With the market stabilizing, Ofgem emphasizes the necessity for energy suppliers to enhance customer service and ensure accessible, responsive, and empathetic support, including allowing flexible payment arrangements and directing customers towards additional support and advice.

Furthermore, suppliers are encouraged to enhance their financial resilience to shield consumers from potential costs associated with supplier failures.

Jonathan Brearley, Ofgem CEO, stated, "While the falling price cap is good news, we are aware that people are grappling with broader cost of living challenges, and I can't guarantee that things will become easier this winter. That's why we've implemented new measures to aid consumers, such as reducing costs for pre-payment meter users and introducing a PPM code of conduct that all suppliers must adhere to before resuming mandatory PPM installations."

"There are indications that suppliers' financial outlook is stabilizing, and reasonable profits are being restored. With the modest increase in the Earnings Before Interest and Tax (EBIT) allowance, suppliers should have no excuse not to support their customers extensively this winter. We're introducing a consumer code of conduct to underscore this commitment, aiming to have it in place by winter."

"This code will establish clear expectations for supplier behavior, particularly regarding their most vulnerable customers, with whom suppliers should proactively engage with compassion and understanding. While some suppliers are already demonstrating this, I aim for it to become the norm in a vital sector that profoundly influences people's lives."