Gas prices dropped 20% in the last week. But what does that mean for your energy bills, and how can you benefit from it?

Although the average UK gas price fell by 20% in the past week Ofgem stated that it would have a “limited impact” on bills.

Despite the decline in gas prices, when compared to the average price of February 2020, pre Covid, it is still one percent more than last year. oil and gas Regulator detection.

It comes as European gas prices for February delivery fell 4.3 per cent to 73.7 euros (£65.28) per megawatt hour on Tuesday, according to guardian.

The main driver behind the downtrend Gas prices The weather was more pleasant than usual, which helped to reduce energy consumption.

European countries are also intensifying the effort to get rid of their own selves Russian oil and gas,They fill gas storage tanks, including LNG (liquefied petroleum gas).

Ofgem reduced the impact of the figures on people’s energy bills after they were released by the Office for National Statistics.

An Ofgem spokesperson said: “Next day gas prices, also known as spot prices, have limited direct impact on domestic bills given how much energy suppliers buy in bulk, but forward prices have also fallen recently.

“When we changed the cap methodology in August last year, one of the benefits was that if prices went down, it would be reflected in the cap more quickly. The cap level will reflect the lower futures prices that we are currently seeing. We will publish the cap levels for April. April towards the end of February.”

“Exceptionally warm weather recently across Europe, and lower-than-expected demand for heating, means that gas currently stored will last longer into the spring, reducing risk in futures prices. the prices It remains more than four times higher than levels seen before fall 2021, but this is a welcome drop, nonetheless.”

The National Network was contacted to comment.