Energy bills are expected to decrease for the next few months as the new Ofgem energy price cap takes effect today for England, Scotland, and Wales.
Electricity and gas bills for a typical household are projected to average £1,568 per year, a reduction of £122, marking the lowest point in two years.
However, this decrease is anticipated to be temporary, with leading analysts at Cornwall Insight predicting a 10% increase in October from today’s levels as prices rebound in the lead-up to winter.
This means household energy bills are expected to rise to £1,723 per year in October, an increase of £155.
“Modest declines in summer are likely to be offset by significant rises in autumn when heating usage increases,” said Adam Scorer, chief executive at the charity National Energy Action.
“Energy costs remain an unaffordable burden for many of the poorest households.”
According to BBC analysis of the price cap, residents in flats or one-bedroom homes will face annual energy costs of around £1,148, while those in larger four-bedroom-plus houses will pay an average of £2,182.
