On Friday, the British energy regulator, Ofgem, said it would lower its price cap on household energy bills from October to an annual level of GBP1,923 (USD2,418) for a typical dual-fuel household, compared with July’s price reduction to GBP2,074 ($2,617.60).

“The drop will save households an average of GBP151 compared with the previous quarter,” the UK regulator said.

Ofgem added, “the drop also represents the lowest level since October 2021 and reflects further falls in wholesale energy prices as the market stabilizes and suppliers return to a healthier financial position after four years of losses.”

Market reaction

GBP/USD is off the low but remains in the red near 1.2570 on the above news. The spot is down 0.17% on the day.