Energy bills set to drop below £2,000 in major boost for Britons

The energy regulator has already introduced a 17 per cent price drop which will come into place over the weekend.

Prices will fall from £2,500 to £2,074 in just a matter of hours at a time when headline inflation is falling at a much slower rate than many anticipated.

The figure is much lower than the £3,549 Britons were asked to cough up last August.

Independent energy market consultants at Cornwall Insight made the positive prediction for October after making numerous accurate forecasts during the cost-of-living crisis.

However, Cornwall Insights also expects prices to rebound to £2,004 from next January.

The firm claimed its prediction reflected consumers “responding to high prices, energy efficiency, weather conditions and other influences by reducing their energy use”.

Cornwall Insights Dr Craig Lowrey added: “Households are facing the challenge of bills that are well above historic levels.”

Prices skyrocketed six-fold following Russia’s invasion of Ukraine.

The Government was forced to intervene amid fears bills could exceed £6,000.

The energy support scheme limited household bills to £2,500 and saved households around £1,000.

The deadline to cash in on a £400 energy bill discount will also expire today.

Money Saving Expert Martin Lewis yesterday put out advice for customers ahead of the next price cap change.

He said: “With monthly direct debit, firms estimate your usage, and assign it to a certain period, so submitting a reading within a few days of the change (many let you backdate a few days too) reduces the risk of their ‘estimating’ going against against you (though there’s always a chance a discrepancy could end up in your favour).”

Lewis added: “Take a pic of the meter for belt ‘n’ braces.”

An Ofgem spokesperson said: “This remains one of the most difficult and volatile periods in history for energy consumers.

"And while bills remain higher than before the energy crisis, it is great news that people will see them drop by £460 a year on average from July 1 with more fixed deals coming back onto the market too.

“As energy regulator, we have taken a range of steps to stabilise the market and protect vulnerable consumers.

"We will also continue to support energy customers by passing savings from drops in wholesale prices onto customers more quickly through the quarterly price cap.

"Anyone struggling to pay their bills should reach out to their supplier as soon as possible.”