Energy bills are expected to fall by as much as 15% from April thanks to a drop in wholesale prices, with regulator Ofgem due to confirm the change on Friday.
In its latest prediction, consultant Cornwall Insight analysts said they expect the regulator to reduce the energy price cap from £1,928 currently to £1,635 from April 1.
This cap effectively determines bills by limiting what suppliers can charge and represents the amount a typical household would pay over a year.
At £1,635 it would be around £400 higher than in early 2019, reflecting still historically high prices.
Electricity is set to cost 23.27p and gas 5.96p per kilowatt hour under the new cap Cornwall estimates, compared to 28.62p and 7.42p at the moment.
Daily standing charges, which are paid regardless of consumption, are expected to rise as Ofgem allows suppliers to recoup energy debt from unpaid bills - which hit a record last year.
Daily charges on electricity and gas will rise from 53.35p and 29.60p to 58p and 30p per day respectively, according to Cornwall Insight.
Ofgem is yet to confirm whether suppliers will be allowed to claw back debt in the upcoming price cap window that will run from April to July.
Such moves previously allowed the likes of British Gas to materially benefit by charging more on bills with the supplier’s profits growing tenfold to £799 million last year as a result.