Energy bills to come down in October – but not for the reason you might think

Business

The energy price cap is set to fall again, according to a closely-watched forecast, as the energy regulator has said the average home is using less energy.

The average household will be paying roughly £200 less from autumn than they are from next month, energy research specialist Cornwall Insight said.

Ahead of Ofgem’s new price cap coming into effect on Saturday 1 July, the firm said it saw the cap for a typical household at the equivalent of £1,871 per year from October to the end of December.

That’s a decrease from the £2,053 cap in effect from July to the end of September and the £3,280 level set by Ofgem for March to June.

While wholesale gas prices and electricity bills are falling, the main reason the average bill is coming down is because from Ofgem will revise downwards how much energy the average house consumes.

The price cap announcement for October will not be made until late August.

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