ENERGY bills remain “stubbornly high” despite the regulator Ofgem lowering the price cap in the coming months.

The regulator said it will mean lower bills, but it has come with a warning from campaigners that as the cost-of-living crisis continues the cap will likely rise again in winter.

Ofgem is bringing down its energy price cap from £3280 per year to £2074 for the average household, from July 1.

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Ofgem said the £1206 reduction to the cap reflected recent falls in wholesale energy prices.

The lower cap will replace the Government’s Energy Price Guarantee (EPG), which currently limits the typical household energy bill to around £2500.

It means the average household will see their annual bill drop by £426.

But those keeping a close eye on prices said energy bills are still causing financial hardship for people.

Citizens Advice Scotland warned the crisis is not over.

David Hilferty, Citizens Advice Scotland social justice spokesperson, said: “This fall in the price cap does not necessarily mean cheaper bills for people, given the end of the Energy Support Scheme.

“The cap remains higher than it was last summer, bills will remain higher than the beginning of this crisis in 2021, and since then people have faced a huge squeeze on their finances."

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The advice charity said it has seen “horrific examples” of people struggling to keep their heads above water during this cost-of-living crisis.

He added: “These soaring energy bills didn’t happen in a vacuum, they happened alongside, and indeed drove, the highest level of inflation and interest rates we have seen in decades and that in turn wiped out the savings of many people, forcing thousands into debt to keep up with essential spending.

“Yesterday we saw food inflation at an eye-watering 19%.

“This cost-of-living crisis is far from over and people will be feeling the effect of it for years to come.”

End Fuel Poverty Coalition warned: “People now face many more months with bills remaining stubbornly high.

“This will see them continue to use up their savings for everyday items, run up credit card bills, fall into debt with energy firms or turn to food banks as the cost-of-living crisis deepens.”

While Cornwall Insight, analysts who monitor energy prices, said: “Despite the cap falling from the sky-high prices of the past two years, the figure remains over £1000 per year more than the price cap levels seen prior to the pandemic.

It added: “We do not currently expect bills to return to pre-2020 levels before the end of the decade at the earliest.”