Changes to how much you pay for gas and electricity to be announced

UK households are set to receive some much-needed relief amid the cost-of-living crisis, as energy bills are predicted to drop to their lowest level in over two years from April.

The energy regulator, Ofgem, is expected to announce a new price cap on Friday. Energy consultancy, Cornwall Insight, predicts it will be around £293 lower per year.

This means that the average household’s bill could decrease from £1,928 per year to £1,635 from 1st April, a reduction of about 15%. Cornwall Insight’s forecast, which takes into account the UK’s energy prices despite disruption in the Red Sea, usually aligns closely with Ofgem’s announcement as both are based on publicly available data.

However, the firm has warned that the UK’s reliance on fossil fuels means it will continue to import expensive gas from countries that could choose to stop selling to Britain. While Cornwall’s forecast is significantly lower than the current price cap, it is slightly higher than the £1,620 they predicted just over a month ago.

Cornwall Insight’s principal consultant, Dr Craig Lowrey, said that despite the anticipated drop, prices would still be a struggle for many and remain hundreds of pounds above pre-pandemic levels.