British households are seeing lower energy bills from today as Ofgem's new price cap comes into force, reducing typical annual costs by £117.
The change represents a 6.6 per cent decrease, bringing the average dual fuel bill down from £1,758 to £1,641 for households with typical usage.
It marks the lowest level for energy prices since September 2024.
Under the new cap, electricity costs 24.67p per unit on average, down from 27.69p, while gas has fallen from 5.93p to 5.74p per unit.
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Part of the reduction follows a decision by Labour to move green subsidies from energy bills to general taxation.
Consumers are being urged to submit meter readings to ensure they are billed accurately under the new lower rates.
Gareth Kloet, energy expert at GoCompare, said: "Firstly, if you didn't take a meter reading on March 31 and submit it to your energy supplier, stop what you're doing and get this done right now."
He added: "This meter reading will ensure you are charged at the new, lower rate for any energy you use from today onwards."
Energy bills fall by £117 as Ofgem price cap cut takes effect
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Without an up-to-date reading, suppliers may estimate usage and apply a higher proportion of energy consumption to the previous, more expensive rates.
Money Saving Expert Martin Lewis explained that most households pay via monthly direct debit, where usage is averaged across the year.
He said: "Most people pay by monthly direct debit, where your average use is taken over the year, and it's smoothed out so you don't have big cashflow issues in the winter.
"To counter that, you either have a working smart meter, or you take a meter reading."
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Energy firms now allow customers to submit readings online and, in some cases, backdate them by several days to ensure accurate billing.
Households can upload a photograph of their meter to their supplier to secure the full benefit of the £117 reduction.
Despite the lower prices, there are warnings the savings may be temporary due to volatility in global energy markets.
Mr Kloet said: "If this is sustained throughout the spring, we may be in for an increase in July when the next price cap is announced."
More than 40 million smart meters have been installed in British homes | GETTYWholesale energy prices have been lower so far this year, contributing to the April reduction, though recent global events have introduced uncertainty.
Rising oil and petrol prices linked to instability in the Middle East have increased pressure on energy markets.
Mr Kloet called on the Government to provide clarity on potential support if prices rise again, warning uncertainty is affecting household financial planning.