Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Energy prices predicted to fall by 16% in April

by January 22, 2024
January 22, 2024
Energy prices predicted to fall by 16% in April

Domestic energy prices will fall by 16% in April, according to a prediction by consultancy Cornwall Insight, bringing some relief to billpayers.

It said the annual household bill when using a typical amount of gas and electricity was expected to drop from £1,928 to £1,620.

Households have endured two years of high prices, but analysts suggest there could be a further fall in the summer.

Bills would still be higher than the pre-crisis norm.

The prediction is not guaranteed, as it will be another month before the regulator, Ofgem, sets its price cap for the second quarter of the year.

“Healthy energy stocks and a positive supply outlook are keeping the wholesale market stable. If this continues, we could see energy costs hitting their lowest since the Russian invasion of Ukraine,” said Craig Lowrey, principal consultant at Cornwall Insight.

How the price cap works

Under Ofgem’s price cap, the annual bill for a household in England, Wales and Scotland using a typical amount of gas and electricity, paying by direct debit, stands at £1,928.

However, if you use more, you will pay more because the price of each unit of energy is capped, not the total bill. Specifically, the price of gas is now 7p per kilowatt hour (kWh), and electricity is 29p per kWh.

If the forecast proves to be correct, the annual bill for typical usage would fall to £1,620 in April, a drop of 16%.

Cornwall Insight is then predicting a further fall to £1,497 a year in July, before rising slightly to £1,541 a year in October.

There remains uncertainty over wholesale oil prices owing to disruption in the Red Sea, and wider tensions in the region, but so far that has not affected prices. Supplies of liquefied natural gas from the US, and low prices in the Asian market, have kept prices down.

“Concerns that events in the Red Sea would lead to a spike in energy bills have so far proved premature, and households can breathe a sigh of relief that prices are still forecast to fall,” Mr Lowrey said.

“Though recent trends hint at possible stabilisation, a full return to pre-crisis energy bills isn’t on the horizon.”

Energy prices have been a central factor in the UK’s high inflation rate, which in turn has pushed up interest rates and the cost of borrowing.

Some households, particularly those in vulnerable situations, have struggled to cover bills – despite financial support from the government – and nearly £3bn is owed by customers to suppliers.

The regulator is proposing adding £16 to a typical household bill between April and March 2025 to give suppliers the funds to offer prepayment plans and write off debts.

Last week, Chris O’Shea, the boss of British Gas owner Centrica has said that his pay last year of £4.5m was “impossible to justify” when others were struggling.

Energy prices and the overall sector are regulated differently in Northern Ireland. Households tend to pay less than the UK average but businesses pay more.

Read more:
Energy prices predicted to fall by 16% in April

0
FacebookTwitterGoogle +Pinterest
previous post
House Jan. 6 Committee deleted more than 100 encrypted files days before GOP took majority: sources
next post
Expelled, imprisoned, excluded: we’re creating a digital underclass​

You may also like

Naked Wines Seeks Debt Adviser Amid Share Price...

March 18, 2024

Decorating Your Home With Costway Christmas Tree

September 13, 2022

Made.com shoppers to lose £12m in deposits, warn...

December 28, 2022

Impossibrew raises £1.57M in record-breaking crowdfunding round as...

February 17, 2025

Institute of Directors Introduces Code of Conduct for...

June 7, 2024

Retail tycoon Mike Ashley joins the race for...

September 12, 2022

UK fines 10 carmakers and two trade bodies...

April 1, 2025

Thousands of Waspi Women Owed Payouts for State...

March 21, 2024

Older adults can thrive as entrepreneurs, says expert

November 12, 2024

Revolut’s earliest crowdfunders set to pocket life-changing returns

December 17, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • DOJ turns to Gabbard’s office for next step in grand jury probe of alleged Russiagate conspiracy

      August 6, 2025
    • New Romanian law may have averted NATO clash with Russia after border strikes

      August 6, 2025
    • Violent attack reignites BOWSER Act debate as Trump floats federal takeover of DC

      August 6, 2025
    • Senate hopefuls jostle for high-stakes seat after Blackburn jumps into governor race

      August 6, 2025
    • Tracking the Health of the Private School Sector

      August 6, 2025
    • Virginia Dem gubernatorial candidate and ex-CIA officer took $50K from CCP-linked tycoon

      August 6, 2025

    Categories

    • Business (8,691)
    • Investing (2,179)
    • Politics (16,328)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved