Good news as energy bills are set to fall to to their lowest level in TWO YEARS – but will still cost the average home £1,635

Energy bills will fall in April, experts think – but only by 15 per cent, or £293, to £1,635 a year.

The average home currently pays £1,928 a year for gas and electricity bills as they are on a tariff regulated by the Ofgem price cap, which is set four times a year.

But expert energy analysts at Cornwall Insight believe the price cap will fall to £1,635 a year from 1 April.

That rate applies to a home with average energy use, on a variable-rate energy tariff and paying by direct debit. 

The current price cap sets the energy bills paid by more than 80 per cent of UK homes, though the exact amount varies depending on gas and electricity use. 

The price cap is then reset in July and once again in October.

 Cornwall Insight thinks the average gas and electricity bill will fall again to £1,465.07 in July, before rising to £1,523.95 in October.

Cornwall Insight principal consultant Craig Lowery said: ‘Forecasts show energy bills returning to their lowest levels in over two years, providing a much-needed respite for a nation struggling with a cost of living crisis.

‘Fairly healthy gas supply across the Atlantic, coupled with high storage levels in Europe, are helping to keep bills down. But we mustn’t get too complacent. Our energy system is still walking a tightrope, and we cannot be sure another political or economic crisis won’t send bills straight back up.

‘Even with the drop, prices will remain a struggle for many. We need to remember, bills remain hundreds of pounds above pre-pandemic levels, and if we don’t speed up the switch to sustainable energy and cut down on volatile imports, they are likely to stay that way.’