Bills are expected to drop further in autumn before rising again at the start of next year
Energy bills are expected to drop in price again when the Ofgem energy price cap changes in October. Consultancy Firm Cornwall Insight have today released their latest predictions, showing that energy bills are likely to stay 'relatively stable' over the next year but remain significantly above pre-pandemic levels.
Craig Lowrey, principal consultant at Cornwall Insight, said: “The news of a relative stabilising of energy bills will no doubt leave households with mixed feelings. “Moreover, we must remain committed to funding the transition to renewable energy sources and maintaining our net-zero targets. By doing so, we can establish a stable and secure energy supply that is less susceptible to fluctuations in the international market.”Emily Seymour, energy editor at Which?, said: “These predictions that the price cap will remain relatively stable for the next year will give consumers some certainty over their energy bills for the foreseeable future.
“It’s also really important to check the tariff’s exit fees in case you want to leave that deal early if the price cap comes down unexpectedly or cheaper deals appear.” He told his followers: "I know many want to know likely standing and unit charges - but the split between them is a policy decision by Ofgem made at each price cap announcement, so it's v impossible to say ." He said the assumptions made in the latest predictions should be taken "with a giant spoon of salt".
Energy firms saw their supplier profit margins hit last year, when wholesale prices were sent soaring by Russia’s invasion of Ukraine but the price cap protected customer bills from the worst of the rises. Wholesale prices have come down in 2023, while the price cap has been set at a level by Ofgem this year to allow firms such as British Gas parent Centrica to recover some of those earlier losses.
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