Domestic energy prices predicted to fall by 16%

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The forecast has predicted a further fall in the summer, with a slight increase in October.

Domestic energy prices are set to fall by 16% in April, providing financial relief to households.

Consultancy Cornwall Insight has predicted that the annual household bill for gas and electricity will drop from £1,928 to £1,620.

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The cost of living crisis led to an increase in energy prices, putting a financial strain on households across the country. 

However, analysts have suggested that by April the prices could decrease, with a further fall in the summer of 2024.

Ofgem are due to set their price cap for the second quarter of the year. The price cap currently stands at £1,928 - which is 7p per kilowatt hour for gas and 29p per kilowatt hour for electricity.

The annual bill for typical usage would drop to £1,620 if the forecast is correct, and to £1,497 a year in July. However it would rise slightly again in October to £1,541.

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Energy prices could fall by 16% by AprilEnergy prices could fall by 16% by April
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Craig Lowrey, Principal Consultant at Cornwall Insight said: "Healthy energy stocks and a positive supply outlook are keeping the wholesale market stable. If this continues, we could see energy costs hitting their lowest since the Russian invasion of Ukraine.”

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Energy prices have been one of the main factors of the UK’s inflation, leading to households being unable to cover bills. It has been reported that nearly £3 billion is owed to energy companies. 

Wholesale oil prices could also lead to a rise in energy prices, Lowrey explained: "Concerns that events in the Red Sea would lead to a spike in energy bills have so far proved premature, and households can breathe a sigh of relief that prices are still forecast to fall,though recent trends hint at possible stabilisation, a full return to pre-crisis energy bills isn't on the horizon."

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