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Energy bills forecast to fall by £300 in April after 'mild' winter
22 January 2024, 17:19
Energy bills are forecast to fall by more than £300 a year starting in the spring after a drop in wholesale gas prices.
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Industry consultant Cornwall Insight expects the average bill will fall 16% on the previous quarter.
They could reach the lowest point since Russia’s invasion of Ukraine.
The energy price cap will fall from £1,928 to £1,620 from April, the group predicts.
Gas stocks have been higher than predicted during a mild winter, leading to a fall in prices since November. Oil prices have also been relatively muted.
Cornwall Insight expects prices to stay relatively low in 2024, compared to the previous two years.
They say bills should fall to £1,497 a year for a typical annual bill from July, before a small tie to £1,541 from October.
Craig Lowrey, a principal consultant at Cornwall Insight, said: “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.
“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.”
However he cautioned that “a full return to pre-crisis energy bills isn’t on the horizon”