Experts predict average energy bills could fall by hundreds from April

Millions of households could see their energy bills fall within months, according to the latest forecasts.

Energy consultancy Cornwall Insight said it expects Ofgem's price cap to drop to 5.96p per unit of gas and 23.7p per unit of electricity from April 1. Overall, this could save households around £293 per year, making average bills fall from £1,928 per year now to £1,635 from the start of April.

Ofgem is set to announce its next price cap next Friday. Cornwall Insight's forecasts have previously been extremely close to price cap announcements when this close together.

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“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 said. But it warned that the UK's reliance on fossil fuels and imports of expensive gas from countries is risky as such countries could stop selling.

“Forecasts show energy bills returning to their lowest levels in over two years, providing a much-needed respite for a nation struggling with a cost of living crisis,” said Dr Craig Lowrey, principal consultant at Cornwall Insight.

“Fairly healthy gas supply across the Atlantic, coupled with high storage levels in Europe, are helping to keep bills down.

“But we mustn’t get too complacent. 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.

“Even with the drop, prices will remain a struggle for many. We need to remember, bills remain hundreds of pounds above pre-pandemic levels, and if we don’t speed up the switch to sustainable energy and cut down on volatile