Analysts believe that energy bills could rise by as much as £500 a year on average regardless of an expected reduction in Ofgem's price cap.
On Monday, February 27, the energy regulator is expected to announce a drop in the cap on the amount energy suppliers are able to charge by roughly £1,000 from April 1, according to the latest forecasts from energy consultancy Cornwall Insight. The energy price cap is used by suppliers to let them know what maximum they can charge customers for each kilowatt hour (kWh) of energy they use.
The price cap is based on the amount an average household would pay for an annual bill, but households may spend more or less on their energy bills depending on how much they use.
