Energy prices will likely fall even further in July following a hefty drop from April 1, Cornwall Insight analysts have forecast.
The energy consultant said Ofgem’s price cap would likely fall by 8% to £1,560 on an annualised basis in July, from £1,690 in April.
April's price cap, which determines how much suppliers can charge per unit of electricity, is set to be 12% lower than currently.
July's forecast is higher than original predictions though, which Cornwall said was due to a rise in wholesale prices during February.
“Additionally, the new predictions also include two adjustments from Ofgem which are being introduced from the start of April,” Cornwall added.
“The regulator has allowed a temporary allowance to aid suppliers in meeting the cost of customers who are struggling to pay their bills.”
Such a move has been designed to recoup some of the roughly £3 billion worth of energy debt faced by suppliers, though British Gas and E.ON have reported soaring profits on such allowances previously.
“Predictions of a fall in energy prices in July are another step in the right direction for households who have been struggling with the cost of living over the last few years,” Uswitch’s Will Owen commented.