According to the British Times website, according to the final forecast before the UK Gas and Electricity Market Office (Ofgem) updated the price cap, energy prices will fall by 7% from July, reducing the average household's annual energy bill to £1,720.
The British government introduced the energy price cap mechanism in 2019 to limit suppliers' charges for each unit of gas and electricity in the standard tariff package. The policy is designed to prevent suppliers from deceiving loyal customers who are unwilling to shop around for fixed prices. Ofgem is updated every three months based on the regulator's assessment of the costs that efficient energy suppliers should bear.
Ofgem will confirm the price cap level from July to September this Friday. Cornwall said its latest forecast is based on the assumption that the regulator will continue to allow suppliers to charge all customers an annual surcharge of £28, which is used to help indebted customers.
Under the influence of years of high energy prices, the level of household energy debt in the UK has reached a record high.
The firm noted that forecasts for further price cap cuts in coming quarters would be influenced by a number of factors, including "climate change patterns, the relaxation of EU gas storage rules, the ongoing dispute over US tariffs and the knock-on effects of the war in Ukraine".
