Energy bills are projected to fall by an average of 15% – equivalent to £293 in annual savings – as a mild winter meant high gas storage levels.

A closely watched forecast by Cornwall Insight indicates energy bills from April to June will drop to £1,635 a year for the typical user.

By comparison, average yearly costs from January to March stood at £1,928. For the rest of the year, however, bills will be lower, Cornwall anticipates.

Such a drop would result in the lowest energy bills in two years.

Energy prices remain above pre-pandemic levels meaning many households will continue to struggle.

But fears of a price spike, due to costly and time consuming Red Sea shipping diversions as Houthis targeted shipping vessels, have not materialised.

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The price cap will fall further when revised again in July before a slight rise in October for the final three months of the year.

The energy regulator Ofgem puts a cap on the amount that energy providers can charge per unit of power every three months.

Those caps have come down as wholesale oil and gas prices have fallen.

The next official price cap announcement for April will be published on 23 February.

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