Millions of Brits could see energy bills slashed by £80 just in time for winter

Energy firms will be forced to lower bills for 11 million customers as winter looms.

Households could see them cut by just over £80 a year on average after action by Ofgem.

Experts say the watchdog is set to announce a hefty reduction in its price cap next month, to take affect in October.

The move would force firms to cut prices for households on standard variable tariffs and other default deals.

Cornwall Insight predicts Ofgem will reduce its price cap by £83 to £1,171 a year.

But that would only partly offset an increase in the cap in April which, at the time, was set to add £117 a year to an average bill. Ofgem updates the cap twice a year.

Charlotte Farmer, an analyst at Cornwall Insight, said: “The drop is mostly a reflection of price reductions in the wholesale market since February, with most changes driven by lower quarterly gas prices.”

She said reduced VAT, lower inflation and lower smart meter costs would also lower the cap.

Ofgem added: “As we see wholesale costs fall, we will also expect see the cap go down so these benefits are quickly passed to consumers. ”

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