Octopus Energy chief executive Greg Jackson expects the energy price cap to drop significantly from April due to suppliers’ hedging strategies.
Speaking with the BBC at the World Economic Forum in Davos, Jackson said the cap, which is set by regulator Ofgem, will fall by "hundreds of pounds” in the spring.
Energy suppliers had bought gas in advance of the winter, he explained, meaning wholesale prices at which it was being bought for the coming months had fallen.
"The energy we're buying right now for the next few months is coming in among the cheapest it's been for the last few years,” Jackson added.
“Of course, there are so many problems in the world, but certainly, in the short term, energy prices look like they're actually going to be coming down and stabilising.”
Ofgem’s price cap reflects the amount a typical UK household would pay over a year on the current rates, effectively determining how much suppliers can charge per kilowatt hour of gas and electricity respectively.
This is largely based on wholesale prices, but also takes account of network and operating costs, alongside granting allowances for suppliers to recoup debt.
April’s cap is set to include such an allowance, after energy debt was said to have sat near £3 billion late last year, according to Ofgem.
Cornwall Insight analysts predicted last month that April’s cap would be set at £1,660, marking a £268 decrease from the £1,928 for between January and March.
Ofgem is due to confirm the upcoming cap price on February 23.