Household energy bills set to fall by 117 from April

"Energy consultancy Cornwall Insight predicts that the Ofgem price cap will drop 7 per cent to £1,641 a year for a typical dual-fuel household when it is reset on 1 April. The forecast reduction is slightly smaller than Cornwall Insight's previous estimate of an 8 per cent, or £138, cut, reflecting a recent uptick in wholesale energy prices. Ofgem is due to confirm the official cap level by 25 February for the period running to 30 June."

"The projected fall follows measures announced in last November's budget by Rachel Reeves, including the scrapping of the Energy Company Obligation scheme. Cornwall Insight estimates these policy changes will reduce the cap by about £145 a year once VAT and pricing allowances are factored in."

"Any reduction in bills is positive, especially at a time when affordability matters. The fall in policy costs is doing most of the heavy lifting, and while wholesale prices have been in the headlines, their impact on April's bills is limited."

Household energy bills are forecast to fall by around £117 from April as the Ofgem price cap is predicted to drop 7% to £1,641 for a typical dual-fuel household when reset on 1 April. The reduction is slightly smaller than earlier estimates because of a recent uptick in wholesale prices. Government policy changes, including scrapping the Energy Company Obligation scheme, are estimated to cut about £145 a year after VAT and allowances, while higher network charges offset some savings. Wholesale gas remains volatile but below January levels, with bills expected to stay relatively steady through 2026.

Read at Business Matters