Cornwall Insight has released its final forecast for the April – June default tariff cap (price cap).
The predicted price cap for April is £1,635 per annum for a typical dual fuel household, marking a 15% (£293) reduction from the current level of £1,928 per year.
This forecast includes the new £16 bad debt allowance, though its inclusion in the cap awaits official confirmation from Ofgem.
Ongoing consultations by the energy regulator on the cap’s level and composition could potentially introduce additional costs not reflected in the forecasts.
The decrease in the energy price cap is attributed to favourable factors such as steady LNG supply through the Atlantic amidst geopolitical tensions in the Red Sea region, along with ample availability of LNG cargoes in Europe and Asia due to mild weather conditions.
The official announcement of the cap by Ofgem is scheduled for 23rd February.
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