Could energy bills really come down this year?

Hard-pressed households are impatient to see energy bills come down - and the government believes it might actually be about to happen.

In last year’s Budget, chancellor Rachel Reeves confirmed that various green levies that we pay through our energy bills are being scrapped in April.

This, she said, will take an average of £150 off the costs of household energy bills.

Energy consultancy Cornwall Insight has looked at the numbers and broadly agrees with the government’s figures, calculating that from April, bills will fall by an average of £117 a year.

The group also estimates that the energy price cap for a typical dual-fuel household will fall to an average of £1,641 a year - down from £1,758 a year.

What might happen next?

So far, so good, but this is just one step in the right direction.

As a result, there are already questions about what might happen in 2027.

“The real test will be keeping those savings going,” said Craig Lowrey, principal consultant at Cornwall.

“That won’t be easy as the UK continues to upgrade its networks and infrastructure.”

Mr Lowrey insisted that investment is needed if the country is to have a more “secure and resilient” energy system.

However, he said an “open conversation” needs to be had about how this transition won’t be cost-free.

“Bills aren’t going to drop by two or three hundred pounds overnight,” Mr Lowrey added.

“But long-term progress is possible if we stick with the transition.”

What help can I get with energy costs?

If you’re struggling to keep up with your energy bills right now, then there are options available.

Firstly, speak to your supplier about any help they can provide, such as grants.

We’re also here to support you.

We can:

• help you check you’re claiming all the benefits you’re entitled to
• offer budgeting tips
• talk you through the range of debt solutions available

It’s also well worth checking out our guide on what to do about energy arrears.