The energy price cap is set to fall again resulting in cheaper electricity and gas bills, according to a closely-watched forecast.

Energy bills in the final three months of 2023 are projected to drop before increasing in 2024, according to research firm Cornwall Insight, as they expect strikes at Australian gas facilities will bring up gas prices.

Higher gas prices means higher electricity bills.

But consumers can expect cheaper bills from October as, according to the Cornwall forecast, energy regulator Ofgem will bring its price cap down to £1,823 for an annual average household bill.

At the moment, typical yearly energy bills cost £2,053.

The £230 expected fall in average bills comes in large part because Ofgem has said homes are using less energy and revised downwards what is categorises as average energy use.

If the average annual energy bill calculations were made using the old measure of average energy use consumers could expect annual bills of £1,925.

Ofgem energy price cap ‘costing people money and boosting inflation’

Energy bills to fall from today but will still cost almost double pre-crisis levels

Everything you need to know about the energy price cap change

The regulator puts a cap on the amount energy providers can charge per unit of power. Those caps have continually come down as wholesale oil and gas prices have fallen.

Be the first to get Breaking News

Install the Sky News app for free

Every quarter the cap is revised. The next official cap announcement will be made by Ofgem on 25 August and comes into effect on 1 October.

However, from 1 January next year Cornwall forecasts the price cap will rise to £1,979 for the average household bill.

Higher prices than current levels are expected to remain from April 2024 when average bills are anticipated to be £1,915 and from July bills are forecast to be £1,867 a year.

Related posts:

All-male FTSE boards extinct as number of women rises by 50% Ex-Aviva CEO Wilson to run new insurance venture Abacai Bicycle brand Ribble gets into gear for sale as industry sales surge Heathrow says it has slipped from number one to tenth place among Europe’s airports Advent and wealth fund brew up joint £4bn bid for Unilever tea arm Tesco launches reusable packaging trial – as Waitrose scraps single-use plastic bags from deliveries Unilever shares fall as it defends £50bn approach for GSK’s Aquafresh to Panadol consumer arm Germany to ban Russian oil imports by end of year Carlos Ghosn reacts as French issue ‘international arrest warrant’ over Renault cash claims If it looks like a duck, it’s a duck! Why Rishi Sunak’s windfall tax is facing a backlash UK house price growth holds steady – but warning of sharp fall ahead Princess of Wales’s parents’ party supplies firm sold after brush with insolvency