Energy bills may drop quicker than earlier predicted
Released On 23rd Feb 2023
Energy bills may drop quicker than earlier predicted: The energy price cap could fall faster than previously expected as experts have lowered their predictions for this year’s energy prices.
The price cap determines the highest total suppliers can charge for every kilowatt hour of energy usage.
Ofgem acknowledged, in November, that the energy price cap was due to increase to £4,279 a year for the duration from January to March 2023.
Investec bank energy experts had mentioned earlier that the price cap could moderately fall to £3,458 in April, £2,640 in July & £2,704 by October.
Now Investec forecasts that the price cap will be £3,317 in April, £2,478 in July & £2,546 in October.
Analysts say that warm weather and efforts from households to reduce energy usage have assisted in the modification to the estimates.
Consultants from Cornwall Insight said, last week, energy bills could drop below government support in July, estimating bills to be at about £2,800 annually from July.
The EPG is now set to rise to £3,000 yearly in April but if the price cap turns out to be below the EPG, that would mean the government support scheme will actually become redundant from July going forward.
Energy bills may drop quicker than earlier predicted.
