Cornwall Insight’s latest price cap prediction would suggest average energy bills will fall by £117 from 1 April to £1,641.
This represents an increase from their previous prediction (£1,620), caused by the spike in gas prices earlier this year. If Ofgem confirms this prediction, it will still leave average energy bills £599 above pre crisis levels and £73 above the level at 1 July 2024.
A spokesperson for the End Fuel Poverty Coalition, commented:
“The April price cap will see one of the biggest changes in the make-up of energy bills in recent years.
“Budget decisions to remove costs from bills and Government moves to alter how the Warm Home Discount is paid for, will mean changes across standing charges and unit costs. Even those on fixed tariffs will need to look carefully to check that energy firms pass on the changes and potential savings to these customers.
“Meanwhile, volatile gas prices earlier this year also make the wholesale element subject to uncertainty and may create an upward pressure on bills for those on the standard variable tariff.
“Households will need to keep a close eye on Ofgem’s announcement next week and pay careful attention to the changes in unit costs and standing charges, rather than focus on the headline ‘average energy bill’ figure.”
Uplift Deputy Director Robert Palmer said:
“Predictions that energy bills will fall in April suggest that the UK is starting to turn a corner on energy bills.
“Last year we generated record-breaking amounts of renewable energy, with wind power replacing gas and reducing the wholesale cost of electricity by a third. This was partly possible because of the government’s clean power plan.
“The only real, long-term route to lowering bills is to get off volatile gas, whether that’s supplied by Putin, Trump’s America or profit-hungry oil and gas companies.
“It’s not just our bills that will benefit from more renewables, it’s our planet. Already we’re seeing the impacts of climate change caused by our oil and gas dependency and the costs it imposes on everyone, whether that’s flooded homes and businesses or rising food prices.”