- Ofgem price cap likely to fall by £293 a year in April, says Cornwall Insight
- Although any reduction in energy bills is welcome, prices are far above pre-2021 levels.
Experts believe energy bills will fall in April, but only by 15 per cent, or £293, to £1,635 a year.
The average household currently pays £1,928 a year for gas and electricity bills as they are subject to a tariff regulated by Ofgem’s price cap, which is set four times a year.
But expert energy analysts at Cornwall Insight believe the peak price will fall to £1,635 a year from April 1.
This rate applies to a home with average energy consumption, at a variable energy rate and paid by direct debit.
The current price cap sets the energy bills paid by more than 80 per cent of UK households, although the exact amount varies depending on gas and electricity usage.
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The maximum price is reset in July and again in October.
Cornwall Insight believes the average gas and electricity bill will fall back to £1,465.07 in July, before rising to £1,523.95 in October.
Cornwall Insight principal consultant Craig Lowery said: ‘Forecasts show energy bills will return to their lowest levels in more than two years, providing much-needed respite for a nation battling a cost-of-living crisis.
‘Pretty healthy gas supplies across the Atlantic, coupled with high storage levels in Europe, are helping to keep bills down. But we must not become too complacent. Our energy system is still walking a tightrope and we can’t be sure that another political or economic crisis won’t cause bills to go up again.
‘Even with the fall, prices will continue to be a struggle for many. “We must remember that bills are still hundreds of pounds above pre-pandemic levels, and if we do not accelerate the shift to sustainable energy and reduce volatile imports, they are likely to remain that way.”