Household energy bills could fall to an average of £2,053 a year as the regulator could lower the cap this week.
They are expected to lower it by 18 percent meaning bills would drop as soon as July.
Millions of households will finally be able to breathe as they can save some of their hard-earned cash and benefit from the decline in European natural wholesale gas prices.
April’s price cap hit £3,280, however in just weeks a typical household can expect to pay £2,053 per year for their energy bills.
This is according to the final forecast by Cornwall Insight which shows a significant decrease of £1,227 – 18 percent.
Despite the big drop in prices, energy prices remain over £1,000 higher than their pre-pandemic levels.
It should be noted that it is unlikely bills will return to those levels before the end of the decade at the earliest, the analysts shared.
The Government have tried to shield Britons from these higher prices, however, by introducing the Energy Price Guarantee.
This put a cap on the price of gas and electricity bills at an average of £2,500 for a typical household from October last year.
The £2,500 a year annual bill is based on a typical household paying by direct debit.
For those who pay on receipt of bills, or use a prepayment meter, the cap is slightly different.
The Government also announced the £400 rebate scheme which was spread over six months from October, which helped reduce costs further.
Despite predicting an average consumer price drop of around £450, Cornwall Insight’s principal consultant Dr Craig Lowrey added: “While bills are falling, the cap is still expected to remain comparatively high against historic norms, and those hoping to see a return to the kinds of bills seen at the start of the decade will be disappointed.
“Regrettably, it looks as if these prices may become the new normal.”
If people are falling behind with their energy bills, and finding themselves struggling to pay, the best thing to do is contact their supplier as soon as possible.
Under rules from Ofgem, their supplier has to help them – usually by negotiating a payment plan that they can afford.
There are a range of options suppliers could offer if someone is struggling, including:
- A full payment plan review
- Affordable debt repayment plans
- Payment breaks (though this won’t be right for everyone)
- Payment reductions
- More time to pay
- Access to hardship funds
