Gas and electricity bills are anticipated to drop to their lowest levels in over two years following the easing of the energy crisis sparked by Vladimir Putin’s invasion of Ukraine.
Analysts at Cornwall Insight predict that energy bills will decrease by approximately 7% starting in July, with the average household expected to pay about £1,574 annually. This forecast suggests a yearly reduction of £116 compared to the price cap set in April.
Such a decrease would bring energy costs to their lowest since the onset of the Ukraine conflict, which had previously driven global energy prices up. The last similar price cap was £1,216 during the winter of 2021-2022.
This news arrives just a week before Ofgem, the energy regulator, is scheduled to make its quarterly price cap announcement.
If these predictions hold true, it would mark a 25% decline in prices over the past year, making them roughly £500 a year cheaper than in July 2023.
Cornwall Insight also anticipates a slight increase in the cap in October, followed by another drop in January 2025, according to their statement.
Madsen Pirie, president of the Adam Smith Institute, commented that government policies continue to artificially inflate energy prices by limiting investments in gas and blocking fracking initiatives.
