Households will receive a £600 increase in energy bills

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Energy bills are expected to fall this summer by up to £600 more than previously expected due to falling wholesale prices, a stimulus for households and the government.

Analysts from Cornwall Insight say they now expect the annual price cap to drop to £3,208 in April and then £2,200 between July and December.

That compares to their earlier forecasts in early January of £3,545 for April and £2,800-£2,835 between July and September.

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The actual height of the price cap will depend on wholesale prices in the coming months. They fell due to the milder weather.

The maximum price is currently £4,279. However, the government has stepped in to subsidize household bills so that typical households pay no more than £2,500 a year.

From April, the state will cut its support, allowing households to pay typical bills of up to £3,000 instead. If the price cap falls as predicted in April, the government’s bill would fall to zero after July.

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While the projections are lower than previous forecasts, they are still much higher than historical averages.

In October 2021, the price limit was £1,277.

However, it is well below last year’s worst forecasts. In August 2022, Cornwall Insight had predicted energy bills would nearly double to more than £6,600 a year by this spring, as Vladimir Putin cut off European gas supplies, sending prices to record highs.

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