Britons have been offered a “glimmer of hope” as the energy price cap is predicted to drop significantly from April 2024.
The latest prediction from Cornwall Insights suggests that Ofgem’s energy price cap will fall by 14 percent in April 2024.
This means that a typical dual fuel consumer’s energy bill would drop from £1,928 to £1,660 a year which would be a £268 decrease.
According to the firm, the trend could continue throughout the year with the price cap easing to £1,590 in July before a slight increase to £1,640 from October.
The energy price cap is expected to fall significantly
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Despite this, households are being told to brace themselves for a “tough winter” with their energy bills after the government's energy support ended.
Experts are reminding families that energy bills remain will high for the immediate future despite there being “light at the end of tunnel”.
Natalie Mathie, an energy expert at Uswitch.com, explained: “Suggestions that the price cap could fall significantly in April will bring a glimmer of hope to consumers, but they still face a tough winter with high energy bills over the coming months.
“The cost of energy will rise on January, with many households likely to pay more than they did last year as there is no Government bill support.
“The prospect of a 14 percent fall in the price in April, and potentially another drop in July, means there is light at the end of the tunnel for consumers if these predictions become reality.”
Furthermore, the energy expert noted that any guesses as to the future of energy bills needs to factor in the impact of external events on the wholesale market.
Last year, increases to gas and electricity bills were exacerbated by Russia’s illegal invasion of Ukraine which pushed bills up further.
Ms Mathie added: “However, caution is still required as the wholesale market is influenced by many factors.
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Britons are used to seeing the price cap rise instead of coming down
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“Predictions are less certain the further out they go, and a lot could change between now and February, when the April price cap will be officially announced.
“These quarterly energy price changes cause consumers a lot of financial uncertainty, as it is challenging to budget for a bill when rates can change so frequently.”
However, Ms Mathie believes these forecasts could encourage energy suppliers to bring back cheaper fixed deals to the market.
She called on industry regulator Ofgem to make sure firms were offering deals at the most competitive rates as possible.