"Consultancy Cornwall Insight predicts that Ofgem will cut the energy price cap by £117, reducing the typical annual dual fuel bill to £1,641 from April 1. The projected drop is slightly smaller than its previous estimate of an 8% (£138) fall. Ofgem will confirm the new cap level by February 25, covering the period from April 1 to June 30."
"Cornwall Insight said that, once VAT and pricing allowances within Ofgem's cap calculation are taken into account, the changes are likely to reduce the cap by around £145 a year. However, some of the savings have been offset by rising costs associated with operating and maintaining Britain's energy networks. Wholesale energy prices have risen slightly since Cornwall Insight's last forecast in December, particularly gas, which remains volatile due to geopolitical factors. Despite this, wholesale costs are still lower than when Ofgem set the January price cap."
Ofgem's energy price cap is forecast to drop by £117 from April 1, lowering the typical annual dual-fuel bill to £1,641, a roughly 7% reduction. The cut is slightly smaller than a prior estimate of £138. Ofgem will confirm the cap for April–June by February 25. Chancellor Rachel Reeves's plan to scrap the Energy Company Obligation is expected to reduce average household bills by £150 from April. After VAT and pricing allowances are applied, Cornwall Insight estimates an effective reduction of about £145, though some savings are offset by higher energy network operating and maintenance costs. Wholesale gas prices have risen slightly and remain volatile. Analysts expect the cap to remain relatively steady through 2026 with only a small July increase, providing modest relief after prolonged elevated costs.
Read at London Business News | Londonlovesbusiness.com
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