In a boost for households and the government, the energy bill forecasts were cut for the second consecutive week.
Investec forecasts that the price cap will fall to £2,478 by July. This is more than £150 less than an estimate made on January 4.
This is because gas prices continue to fall due to warmer winter temperatures.
Investec expects that the price cap for energy bills will fall to £3,317 by April, then to £2,478 by July and to £2,546 by October.
This compares with previous forecasts of £3,458, £2,640, and £2,704. Mild weather has led to a drop in gas prices.
It means that the price cap will be below the £3,000 level starting April with the government’s £3,000 Energy Price Guarantee – reducing the government’s support bill.
But bills will still be much higher than historical norms. The price cap for October 2021 was £1,277.
Due to Russia’s war against Ukraine, prices have risen.
