Energy bills predicted to fall to nearly £2,200 from July

Consultants have lowered their previous estimates by £300

British households are likely to face annual energy bills of around £2,200 from July onwards.

Energy consultancy Cornwall Insight has predicted that annual energy bills for a typical household could fall from £4,279 now to £3,208 from April.

Consultants stress that these forecasts are around £300 lower than their previous forecasts issued on 4th January.

They attribute this change to the recent slide in the wholesale energy markets.

The report suggests that prices in the second half of the year remain below the government’s Energy Price Guarantee (EPG), meaning that UK subsidies for household energy bills could hit zero in the coming months.

Currently, the EPG brings a typical household energy bill to around £2,500 a year.

Jess Ralston, Energy Analyst at the Energy and Climate Intelligence Unit, said: “The EPG is now predicted to cost the government nothing in the second half of this year, so there may be a pot of cash available that could be spent on making our leaky homes cheaper to run in the long term.

“Helping people to put in loft and wall insulation now could help to shield households from future gas price volatility, which is a feature of gas markets, while lowering bills.”

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