Money Wellness
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calendar icon20 Feb 2024

Energy bills expected to fall by £300 a year

Average gas and electricity bills are expected to fall to the lowest level in more than two years in April.

Energy consultancy Cornwall Insight has predicted Ofgem’s price cap will drop 15%, meaning an annual energy bill for an average household will be cut to £1,635. This is a reduction of nearly £300 a year on current prices.

Cornwall Insight put the fall down to a warmer winter and less disruption than feared in the Red Sea keeping wholesale prices down.

What is the price cap?

The price cap is a limit on how much suppliers can charge for a unit of gas and electricity. This means you could end up paying more than £1,635 a year – this is just the amount an average household on a standard variable tariff paying by direct debit is likely to pay. If you use more energy than the average household, you’ll pay more.

The price cap for April to June is set to be announced on the 23 February, and will affect 29 million households in England, Wales and Scotland.

Despite the fact bills are expected to fall, they are still way higher than before the energy crisis kicked in and an estimated 5.3 million people in the UK are behind on their payments.

Fallen behind with your energy bills?

If you’ve fallen behind with your energy bills, the first thing you should do is get in touch with your supplier. Some offer grants to help customers who are really struggling or you may be able to agree a payment plan for the amount you owe.

If you're vulnerable, it’s also worth finding out if you can sign up to the priority services register. This is a free scheme that provides access to extra help from your energy supplier. Find out more about the priority services register

And for in-depth advice on what to do if you're in debt to your supplier, read our guide on what to do about energy arrears.

 

Avatar of Lydia Bell-Jones

Lydia Bell-Jones

With a background in banking, Lydia has been writing professionally for over five years. She is passionate about helping people improve their personal finances and has a particular interest in the connection between money and mental health.

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