Energy bills set to fall by almost £300 a year when price cap drops in April
Energy bills are forecast to drop by an average of 15 per cent after a mild winter meant high gas storage levels, the latest forecast has said.
Cornwall Insight indicates energy bills from April to June will drop to £1,635 a year for the typical household, which could amount to an annual saving of £293.
Average costs from January to March came in at £1,928.
For the rest of the year, however, bills will be lower, Cornwall anticipates, and if correct this would yield the lowest energy bills in two years.
“Lower overall price cap predictions suggest the UK has, for now, weathered the storm of Red Sea tensions, securing a steady supply of LNG (liquid natural gas) through the Atlantic,” Cornwall Insight said.
However, energy prices do still remain above pre-pandemic levels, meaning many households will continue to struggle.
Between July to September there will be another dip to an expected £1,465 a year, saving the average bill payer £170 it said.
But the last three months of the year, from October to December will rise to £1,524, a slight increase but still less than current levels.
The cap is a the limit energy regulator Ofgem puts on the amount that energy providers can charge per unit of power every three months.
The next official price cap announcement for April will be published on 23 February.
Because of the mild winter, gas storage levels have remained high, and the predictions suggest the feared Red Sea disruption has been mitigated by a reliable supply of liquefied natural gas (LNG) through the Atlantic.
However, the UK energy supply is still dependent on gas imports, said the chief executive of Cornwall Insight, Dr Craig Lowrey.
“Our energy system is still walking a tightrope, and we cannot be sure another political or economic crisis won’t send bills straight back up,” he told Sky News.
“If we don’t speed up the switch to sustainable energy and cut down on volatile imports, [bills] are likely to stay [high]”.
This breaking news story is being updated.
