Ofgem price cap update as energy bills expected to fall ahead of winter

Energy bills are expected to drop in price again when the Ofgem energy price cap changes in October. Consultancy Firm Cornwall Insight have today released their latest predictions, showing that energy bills are likely to stay 'relatively stable' over the next year but remain significantly above pre-pandemic levels.

The latest forecast suggests there will be "relatively small fluctuations" in the energy regulator's price cap through to September next year. The price cap is expected to fall to £1,860 for a typical dual-fuel household from October of this year, Cornwall Insight said.

Following this small dip, the cap is then projected to rise to around £1,960 in January before seeing further decreases in March and July next year.

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It comes after the price cap fell dramatically from £3,280 to £,2074 from July 1. Households were previously protected from the higher price cap by the government's Energy Price Guarantee (EPG), which capped costs for the average household at £2,500 while subsidising the rest of the Ofgem price cap. However, the latest cut in Ofgem's rates means the EPG is no longer necessary.

Craig Lowrey, principal consultant at Cornwall Insight, said: “The news of a relative stabilising of energy bills will no doubt leave households with mixed feelings.

“After the surge in bills seen last winter, it may bring a sense of relief to people that energy prices are currently not forecast to surge unexpectedly. However, there will also be disappointment with prices still well above the levels seen a few years ago – leaving many longing for more affordable options.

“The wholesale market remains the main driver of bills,