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20.01.2023 - 10:53 / dailyrecord.co.uk
New analysis by experts at Cornwall Insight suggests that energy bills could be hundreds of pounds lower than previously thought in the latter half of this year - but only after a spike in the spring. The industry analysts said that the average household's energy bill might hit around £2,200 a year from July, some £300 less than previously forecast.
It is around the same as an average family pays today after the UK Government support has been factored in. Without the energy price guarantee or energy bills rebate scheme, the average household would pay £4,279 per year for their energy bills between January and April - the level of the Ofgem price cap.
But the UK Government has overridden the price cap with a promise to pick up the difference and ensure that average bills are £2,500. From April, the support gets less generous and will only reduce average bills to £3,000 as the monthly discount of £67 applied to electricity accounts will end in March.
The new forecasts from Cornwall Insight suggest that Ofgem's price cap will be set at £3,209 from the start of April, around £300 less than its previous forecast just two weeks ago.
This will not reduce the amount that households pay, as it will still be overridden by the less generous UK Government guarantee, but it does mean that the intervention from the UK Government will cost less money. After that, the price cap will fall again to £2,201 from July and rise slightly to £2,241 from October to the end of the year, the energy consultancy said.
If these forecasts come true - which is far from certain as gas prices change daily - it will mean that the UK Government support for energy bills in practice ends in July as bills will naturally be lower than the cap that ministers have
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