Energy bills could be slashed by another 7% in July as Ofgem’s latest price cap comes into force, according to Cornwall Insight.
Analysts forecast the latest cap, which determines how much suppliers can charge households for gas and electricity, to be set at £1,574.
This is down from £1,690 currently, with the price representing what a typical household woul pay over the year based on such rates.
Such a fall would also mean the cap would be down £500 on the £2,074 seen in July last year.
This 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.
Regulators have since begun updating the cap price more regularly at every three months, with the formal figure for July onwards set to be unveiled later this month.