Analysts at Cornwall Insight anticipate a further decline in energy prices in July, following a significant reduction starting April 1.
The energy consulting firm projects that Ofgem’s price cap will likely decrease by 8% to £1,560 annually in July, down from £1,690 in April.
The price cap for April, which sets the maximum suppliers can charge for each unit of electricity, is expected to be 12% lower than the current rate.
However, the July projection is higher than initially anticipated, which Cornwall attributes to an increase in wholesale prices in February.
Cornwall also mentioned that the new estimates take into account two adjustments from Ofgem, effective from April. These include a temporary allowance to assist suppliers with the costs incurred by customers struggling to pay their bills.
This measure aims to recover some of the estimated £3 billion in energy debt facing suppliers. Companies like British Gas and E.ON have previously reported significant profits from such allowances.
Uswitch’s Will Owen noted that the predicted reduction in energy prices in July is a positive development for households grappling with rising living costs over the past few years.
