Annual household bills for gas and electricity are set to fall by at least £150 from October, new forecasts have revealed.

Figures from Cornwall Insight suggest <a class="ck-custom-link" href="https://www.telegraph.co.uk/business/2023/08/08/energy-price-cap-keeping-bills-artificially-high/">the price cap will drop to £1,925</a> when announced by regulator Ofgem next week, as the global fall in energy prices filters through to customers.

Analysts at the consultancy said average bills could fall by a further £100 if households keep cutting their energy usage as expected.

Ofgem’s price cap for the current period, from July to September, is set at £2,074 for a typical household.

The predicted decrease reflects the drop in gas prices since its peak in 2022, although they are still higher than before Russia’s invasion of Ukraine triggered the energy crisis.

By comparison, the price cap at the start of 2022 was just £1,277.

Price cap forecast to drop to £1,925 but wholesale gas costs to stay above pre-crisis levels{ai:summary}<p>Annual household bills for gas and electricity in the UK are expected to decrease by at least £150, according to new forecasts. This decrease is due to the global fall in energy prices, and if households continue to reduce their energy usage, bills could potentially drop by another £100. The current price cap set by regulator Ofgem for July to September is £2,074, but it is expected to drop to £1,925 next week. This decrease in prices is attributed to the drop in gas prices since 2022, although they are still higher compared to before Russia's invasion of Ukraine, which led to the energy crisis. #economy</p>

Energy bills expected to fall by £150 from October

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