Gas and electricity bills are set to drop to their lowest levels in over two years.
Energy costs are expected to drop by 7% in July, with the average household in Britain expected to see bills reach £1,574 a year, new data from Cornwall Insights found.
Should the forecasts be correct it means household bills would drop by £116 a year compared to the maximum of April's energy price cap.
It would mark the lowest level for gas and electricity prices since the winter of 2021/22 and represents a 25% drop in the last twelve months.
“Looking further ahead we forecast the cap will rise slightly in October before falling again in January 2025,” said Cornwall Insights.
Ofgem is scheduled to announce its quarterly price cap next week, representing what a typical household would pay over the year based on such rates.
The fall will offer “further relief given the quarter-on-quarter drop seen in April,” Cornwall Insight consultant Craig Lowrey said.
“Of course, we must recognise lower prices don’t erase all the problems,” he added.
“The very fact we are still seeing bill levels which are hundreds of pounds above pre-crisis levels underscores the ongoing challenges faced by households.”
Ofgem’s cap had been set at £1,179 in the summer of 2019, before the pandemic and Russia’s subsequent attack on Ukraine sent gas prices skyward.