The energy price cap is set to fall again resulting in cheaper electricity and gas bills, according to a closely-watched forecast.
Energy bills in the final three months of 2023 are projected to drop before increasing in 2024, according to research firm Cornwall Insight, as they expect strikes at Australian gas facilities will bring up gas prices.
Higher gas prices means higher electricity bills.
But consumers can expect cheaper bills from October as, according to the Cornwall forecast, energy regulator Ofgem will bring its price cap down to £1,823 for an annual average household bill.
At the moment, typical yearly energy bills cost £2,053.
The £230 expected fall in average bills comes in large part because Ofgem has said homes are using less energy and revised downwards what is categorises as average energy use.
If the average annual energy bill calculations were made using the old measure of average energy use consumers could expect annual bills of £1,925.
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Everything you need to know about the energy price cap change
The regulator puts a cap on the amount energy providers can charge per unit of power. Those caps have continually come down as wholesale oil and gas prices have fallen.
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Every quarter the cap is revised. The next official cap announcement will be made by Ofgem on 25 August and comes into effect on 1 October.
However, from 1 January next year Cornwall forecasts the price cap will rise to £1,979 for the average household bill.
Higher prices than current levels are expected to remain from April 2024 when average bills are anticipated to be £1,915 and from July bills are forecast to be £1,867 a year.
