From July, energy bills are set to drop by £440 for millions of households.

That’s according to analysts at Cornwall Insight, who claim that the average home will be paying £2,060 each year for their energy from July.

Electricity is expected to fall in price by 3.65p, with gas dropping by 2.75p.

The reason for the fall in prices is the government’s Energy Price Guarantee will be finishing in July – which had kept the cost of bills frozen at £2,500.

Ofgem is set to announce the July price cap later this month, after the price of wholesale gas and electricity has fallen.

Dr Craig Lowrey, from Cornwall Insight, said: “As the wholesale energy market has levelled out in recent weeks, our predictions for the price cap have followed suit.

“Some energy suppliers will potentially look to leverage this opportunity to bring back fixed tariffs on or around the price cap, with stable projections lowering concerns they will lose out over the fixed term.”

The company estimates the price cap could reach £2,098 in October.