Daily Stock Market Reports

‘Signs a corner has been turned on inflation’, says Andrew Bailey

Energy bills are set to fall by up to £600 more than previously expected this summer due to falling wholesale prices, in a boost for households and the state. 

The Ofgem energy price cap will be £3,208 from April, according to analysts at Cornwall Insight.

The consultancy firm said had predicted on January 4 that the cap would be more than £3,500 due to falling wholesale prices.

It said the Ofgem price cap will then fall to £2,200 in July, £600 lower than is previous forecast of more than £2,800. The cap will stay at £2,200 in September, it said.

The cap currently sits at £4,279 but average annual household bills have been limited to £2,500 by the Government’s energy price guarantee, which will rise to £3,000 from April.

The changes will cost the Government £208 per household from April to July, but then fall to zero should the cap fall below the value of the guarantee, as expected.

The bills will still be much higher than prices in October 2021, when the cap stood at £1,277.

However, it is well below previous doomsday predictions by Cornwall Insight. 

In August, the organisation had predicted energy bills would almost double to more than £6,600 per year by this spring as Vladimir Putin choked off Europe’s gas supplies to sent prices to record highs.

Read More: ‘Signs a corner has been turned on inflation’, says Andrew Bailey

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