Britain's energy cap should fall by £300 later this year as UK wholesale prices continue to retreat, according to Cornwall Insight.
Research from the energy consultancy predicts the Ofgem energy price cap will be £3,208 for the average household from April but fall to £2,200 in July.
In 2022, Cornwall Insight had predicted the average energy bill would rise to £6,600 per year by April as Vladimir Putin’s war on Ukraine pushed up energy bills.
Currently, the price cap sits at £4,279, although the government has eased the burden on households with a £2,500 energy price guarantee, meaning the average household should only pay £2,500, although this can be more or less depending on usage.
Various forms of relief have also been provided to households, including a £66 reduction on energy bills per month between October and March and additional payments for those with disabilities, for example.
From April, the government’s energy price guarantee is rising to an average of £3,000, meaning for the average household the government will have to fork out an additional £208.
However, should prices fall as predicted in July, the cost to the Government will be zero.
A £2,200 price cap is still significantly higher than prices in August 2021, when the average yearly cost was £1,277.