Consumers will see a significant cut in their energy bills next April as the market recovers from the war in Ukraine, analysts say.
Cornwall Analysts forecast that Ofgem’s energy price cap will fall by 14% to £1,660 a year, down from £1,928 in January.
The cap limits how much suppliers can charge per unit of electricity and gas, and reflects the wholesale costs of energy.
Craig Lowrey, a consultant at Cornwall Insight, said the international energy markets had stabilised, leading to lower price cap predictions for April.
He said this was a “small light at the end of the tunnel” for households facing higher bills in January, when the cap will rise from £1,834.
According to Cornwall’s estimate, consumers will pay 5.96p for gas and 24.09p for electricity per kilowatt hour from April, plus daily standing charges of 30p and 58p.
This is lower than the 7.42p for gas and 28.62p for electricity that will apply under January’s cap, but higher than the daily standing charges of 29.60p and 53.35p.
Lowrey warned that the government should not rely on market fluctuations to lower energy prices, but instead invest in domestic renewable energy sources and reduce dependence on imports.