We're answering your questions after Ofgem revealed a new energy price cap which will lower bills later this year
Energy bills will fall slightly in the three months from October to £1,923 a year for the typical household, the regulator Ofgem said
It's a drop of £151 on the current annual energy bill for a typical household which is £2,074
The price cap influences what 29 million households in England, Wales and Scotland pay for their energy - it's the price per unit, not the total bill
Under the new cap, the average household energy bill will still be hundreds of pounds higher than in winter 2021, when it was £1,277
PM Rishi Sunak says the dip is "good news" for families, but Labour says the figures demonstrate "the scandalous Tory cost of living crisis"
Some energy suppliers have started to offer deals on their tariffs again.
An energy tariff is how customers are charged for their gas and electricity - they can be variable where prices rise and fall with the market or fixed at a price for a set amount of time.
Energy analyst Ellen Fraser from Baringa Partners says there are savings to be made but be sure to read the small print.
Today on BBC Radio 5 Live, Chris Warburton - standing in for Nicky Campbell - is discussing Ofgem's energy price cap announcement and what it means for you.
You can watch the show live by clicking the Play button at the top of this page.
Kath Paddison
Wake Up to Money
Unlike households, businesses are not covered by an energy price cap. It means non-domestic bills have soared even higher.
Rosemary Brown, the owner of Bluebell Dairy at Brunswood Farm in Derbyshire, has told 5 Live’s Wake Up to Money her energy bills tripled in the last 18 months “going from about £30,000 to well over triple because they're about £110,000 a year at the moment, which is huge for us”.
Despite investing in energy efficient equipment, she says the cost of energy is “crippling” and “we’re getting to the point where we need to see some kind of government intervention”.
Iain Watson
Political correspondent
The government has hailed the reduction in the price cap as a "move in the right direction" - and evidence that progress is being made in the protracted battle against inflation.
But the political snag is that voters may not feel any better off. Over last winter, typical bills were around £2,100 - and £400 was made available to all households.
So the reduction in the cap isn’t that dramatic by comparison. And it may be narrower still when increased standing charges are taken into account.
Help is still available for those on benefits, and pensioners. But many families struggling with fuel bills won’t be eligible for that assistance.
There is also a wider debate about whether a "social tariff" - a discounted bill - should be introduced for less well-off households. It’s been advocated by Citizens Advice.
And opposition parties say more must be done to reduce bills in the longer term, through an expanded home insulation scheme and a move to greener, UK-produced energy.
Image source, .Our cost of living correspondent Kevin Peachey will be on hand soon to answer any questions you may have about today's energy price cap announcement. You can send in your queries via:
In some cases a selection of your comments and questions will be published, displaying your name and location as you provide it unless you state otherwise. Your contact details will never be published.
Citizens Advice has responded to the latest price cap by saying it's helping "record numbers of people" with their energy bills and that today's announcement "will do little to change that".
The charity's head of energy policy Gillian Cooper says households struggling to pay their energy bills could face a winter "as bad, if not worse, than last".
"Typical households are still facing sky-high energy costs, now that support schemes have come to an end," she says.
"Increasing numbers of people we help are in a negative budget," Cooper adds, warning that the next few months "will push households like these over the edge."
Kevin Peachey
Cost of living correspondent
With the cost of living high, the government has been providing some support for struggling billpayers.
Last winter, that was pretty much universal - with a £400 discount on energy bills, and a cap which prevented gas and electricity prices reaching eyewatering levels otherwise. (The system was slightly different in Northern Ireland.)
That support is being withdrawn or not needed this winter.
But some cost-of-living payments are still to come.
Eight million people on low incomes and means-tested benefits will receive £300 payments later in the year and early next year. Pensioners will also get some extra support in winter.
Ministers say these have been hugely significant interventions. Campaigners say more is needed.
Earlier we brought you comments from Jonathan Brearley, the chief executive of Ofgem, the energy regulator which announced today's price cap.
He's been speaking to BBC Breakfast too, where he reiterated that "this winter is going to be tough" for many households as prices will still be high.
"I recognise that prices are way higher than they were a year and a half ago and many households are going to continue to struggle," he says, adding that families are also facing mortgage and cost of living pressures.
Asked why standing charges have gone up - the fee you pay for connection to your energy supply - Brearley says these represent the fixed costs across the system.
"We've thought in the past about moving these standing charges into the average price per unit but the problem is that this creates big winners but also really big losers," he says.
People with high energy needs would be "significantly worse off" if this was to happen, he says.
Kevin Peachey
Cost of living correspondent
As we've said, the cap is on the price of each unit of energy.
Specifically, the price of gas will fall from 7.5p per kilowatt hour (kWh) now to 6.89p from October.
The price of electricity will fall from 30.1p per kWh to 27.35p.
The typical bill is calculated on an estimate that the average household uses 2,900 kWh of electricity and 12,000 kWh of gas.
The standing charge for electricity will be 53.37p per day. For gas customers, the standing charge will be 29.62p per day.
Again, these are averages as they vary across the country.
Image source, .The Green Party has responded to the energy price cap announcement by calling for better home insulation.
The party's co-leader Adrian Ramsay says the government should be announcing funding and support for local councils to start a "mass programme of cost-saving home insulation" for the poorest families.
“Even with a lower price cap, bills are still higher than before the energy crisis and are likely to remain high for the future," he says.
Ramsay adds: “And it is well beyond time to break the link between electricity and gas prices that so distorts the market that it pushes up electricity prices for the public even as cheaper renewable electricity sources could be pushing prices down."
Elaine Doran
Cost of living producer
Jay runs a barber shop but he and his wife Andrea found their direct debits weren’t covering the bills last year.
“We ran over on the bills and then made payment plans to catch up with it. We’ve got no choice, we’ve got to have the heating on - especially with the baby,” he says.
“We’re still in arrears but we are going to get back on top of it ready for this winter.”
Andrea feels those facing high energy bills have run out of ways to bring them down.
“Everyone now has cut down to a point where they can’t anymore,” she says.
Kevin Peachey
Cost of living correspondent
Remember, how you pay for your energy affects what you pay.
The cheapest method is to pay monthly by direct debit. That also means the cost is spread out across the year.
But that option isn't available for everyone.
The four million households which have prepayment meters would have paid £26 more a year than direct debit customers from October - but the government has committed to funding any difference until next April.
But the biggest difference is for those who get a bill and pay every three months - known as standard credit - as they will pay £129 more a year than direct debit customers.
Image source, .Looking ahead to what our bills may by like come autumn can feel quite daunting for all of us. What do you need to know about today's energy price cap announcement? Our cost of living correspondent Kevin Peachey will be answering your questions right here a little later. You can get in touch the following ways:
In some cases a selection of your comments and questions will be published, displaying your name and location as you provide it unless you state otherwise. Your contact details will never be published.
Ed Miliband, Labour's shadow energy and net zero secretary, has said following today's energy price cap announcement that there is a "scandalous Tory cost of living crisis still raging for millions of people".
"Thirteen years of failed Tory energy policy has left Britain as the most exposed economy in Western Europe to the effects of Putin's war and Britain's families and businesses are paying the price," he says.
He goes on to accuse the government of "siding" with oil and gas companies to the detriment of consumers and that "higher energy bills are unfortunately here to stay under the Conservatives."
Kevin Peachey
Cost of living correspondent
Unsure of whether all this affects you?
Well, it probably does.
The price cap governs what 29 million households in England, Wales and Scotland pay for their energy - the price per unit, not the total bill.
It is now set every three months by Ofgem although in the past it was set every six months.
The regulator looks at various aspects of the market including, crucially, the wholesale price of energy which suppliers pay.
Although prices were higher last winter, even after government intervention, what you’ll pay in the three months from October is still considerably more than before Russia’s invasion of Ukraine.
In the winter of 2021, the typical bill was £1,277 a year, so billpayers are being urged to budget accordingly.
Energy minster Andrew Bowie says this is a "positive day" and the drop in the energy price cap is "heartening".
Speaking on BBC Breakfast just now, he admitted that "many people will be looking at this worried about the cost of their energy bills".
But, he said, "it’s heading in the right direction".
Pressed by presenter Naga Munchetty on whether energy bills were affordable, especially since the £400 support from the government will not apply this winter, Bowie said the government would continue to "step in to help those most in need".
He insisted the energy price cap coming down showed the government’s plan to halve inflation and get the economy under control was working.
The chief executive of the energy regulator Ofgem has offered little comfort to consumers about the price of gas and electricity in the long term.
Speaking on Radio 4's Today programme, Jonathan Brearley says: "I would love to come on the show and tell you that prices are going to fall but the truth is the market is still tight."
He goes on to explain there is still a lot of volatility, despite the market becoming more stable since Russia's invasion of Ukraine disrupted supply.
The Ofgem boss gave an example of how just a threat of a strike in one part of the energy system in Australia caused international prices to jump by 30%.
Kevin Peachey
Cost of living correspondent
A typical annual bill will be £151 cheaper than now, and £577 down on last winter from 1 October, after today's announcement.
But reduced government support and higher fixed costs mean many will see little difference in what they pay.
Ofgem's price cap is now set every three months, partially to reflect changes in wholesale prices which are paid by suppliers. It sets the maximum amount that suppliers can charge for each unit of energy but not the total bill.
For a home using a typical amount of gas and electricity and paying by direct debit, the current annual bill is £2,074. This will fall to £1,923 for the final three months of this year.
Those who pay via prepayment meters will see their typical bill fall to £1,949, from £2,077.
Image source, .Kevin Peachey
Cost of living correspondent
The detail behind Ofgem’s price cap can be complicated and quite difficult to follow.
On the face of it, a drop feels like good news, but there are some hefty caveats to consider.
Firstly, the cap is on the unit price of gas and electricity, not the total bill.
So if you use more energy, you’ll pay more.
The cap also differs slightly depending on where you are in the country.
You also pay a standing charge - basically a fee for connection to your energy supply. That also varies by region.
And, government support is less generous than last year.
So, all in all, there is a good chance that what you end up paying will be very similar to last winter.
Colletta Smith
Cost of living correspondent
Although today’s price cap is a slight fall, don’t be getting carried away, it’ll still hundreds of pounds more than the price you were paying two years ago. And what you end up paying on your energy may well be the same or even a little more than you did last winter.
That’s because we’re not getting that blanket government support of £400, dished out last winter to each household as £66 a month. There’s changes to standing charges in many areas too, which may wipe out any savings on the unit price.
For families whose energy needs are just the same as last year, but who are in a worse position after an extra 12 months of paying high bills all round, no-one’s rejoicing at the thought of the winter ahead.