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

Small businesses count the soaring cost of late...

March 7, 2024

Businesses and charities urge UK to scrap VAT...

July 7, 2025

From Vision to Reality: A Conversation with Landscaping...

December 14, 2024

Adobe to buy design group Figma for $20bn

September 16, 2022

Government ‘will not hesitate’ to ensure retailers give...

December 23, 2022

EDF buys EV charger firm pod point for...

June 12, 2025

Lloyds bank predicts 8% fall in house prices...

October 28, 2022

How to stop procrastinating and start leading

April 12, 2024

Bentley boss Hallmarks’ new mission: saving Aston Martin...

August 31, 2024

How to show real appreciation in the workplace

April 2, 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

    • Trump Administration Rightly Attacks EU Tech Regulations but Tariffs and Censorship at Home Harm Americans 

      August 27, 2025
    • White House demands all Gaza hostages return home ‘this week’ amid stalled talks

      August 27, 2025
    • Bankruptcy, Hell, and Exit Barriers

      August 27, 2025
    • Trump’s DC Death Penalty Crusade Threatens More Tyranny of the Minority

      August 27, 2025
    • Tom Hartley Jnr completes sale of Mansour Ojjeh’s extraordinary McLaren collection

      August 27, 2025
    • Trump administration to review 55m US visa holders in sweeping immigration crackdown

      August 27, 2025

    Categories

    • Business (8,897)
    • Investing (2,245)
    • Politics (16,500)
    • 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