Ofgem figure falls short of £100 promised by Theresa May for customers on poor-value tariffs

The government’s energy price cap for 11m households has fallen short of the £100 saving that Theresa May had promised.

The average saving will be £75 a year, under a cap being imposed on default tariffs over concerns that loyal customers are being ripped off.

Only 3m of the 11m, those on the single most expensive default tariff of the big six and high-consumption households, will save more than £100, allowing the government to claim it has partially achieved its pledge, according to The Guardian.

By contrast, those on the cheapest default tariff offered by the six large suppliers will save just £60.

Collectively, the saving will be around £1bn, compared to big suppliers’ profits last year in the region of £800-900m, implying some will make a loss under the cap.