Household energy bills are expected to fall again, to below £2,000 a year from October, according to latest forecasts. Energy industry consultancy Cornwall Insight said it thinks the price cap on energy bills will fall to £1,978.33 from October from July's £2,074, but rise again from January to £2,004.40, based on Ofgem's current measures.
However, the regulator is adjusting its definition of the average household's consumption from October, down from the current 2,900kWh a year for electricity to 2,700kWh, and from 12,000kWh for gas to 11,500kWh, to reflect consumers using less energy to cut costs in the face of high prices.
Based on Ofgem's adjusted definitions of average usage, Cornwall Insight has forecast that the regulator will announce price caps of £1,871 a year from October and £1,900 from January. However, the analysts stressed it is "crucial to understand" that a household's energy bill is based on the energy it consumes, which could be lower or higher than the defined typical household.
