A typical household can expect to pay £2,053 per year for their energy bills from July.
That’s according to the final forecast by Cornwall Insight which shows a significant decrease of £1,227, compared to the previous April cap of £3,280.
Although the cap has fallen from the extremely high prices seen in the past two years, it still remains over £1,000 per year higher than pre-pandemic levels.
Analysts note that it is unlikely that bills will return to those levels before the end of the decade at the earliest.
Currently, consumers are shielded from the price cap’s direct impact due to the Energy Price Guarantee, which limits a typical household’s energy bill to £2,500 per year.
However, starting in July, household bills will revert to the energy price cap.
The official cap announcement by Ofgem is scheduled for 25th May.