Ofgem price cap forecast predicts energy bills will fall again later this year
manchestereveningnews.co.ukThe average annual energy bill is expected to fall to below £2,000 this autumn, according to the latest Ofgem energy price cap predictions.
Cornwall Insight said in its most recent forecast that it expects the price of an average annual bill to fall to £1,978.33 from October - down by around £100 from July’s £2,074.
It said it then expects a small rise from January to £2,004.40. However, Ofgem is also adjusting its definition of the average household’s consumption from October, down from the current 2,900 kWh a year for electricity to 2,700 kWh, and from 12,000 kWh for gas to 11,500 kWh, to reflect consumers using less energy to cut costs in the face of high prices. Try MEN Premium for FREE by clicking here for no ads, fun puzzles and brilliant new features. Based on Ofgem’s adjusted definitions of average usage, Cornwall Insight has forecast that the regulator will announce price caps of £1,871 a year from October and £1,900 from January.
The analysts also stressed it is “crucial to understand” that a household’s energy bill is based on the energy it consumes, which could be lower or higher than the defined typical household.
Read more on manchestereveningnews.co.uk