Gas Prices To Reduce In The UK
- 13 hours ago
- 1 min read
Ofgem is expected to lower the energy price cap in April.
Cornwall Insight forecasts a 7% reduction in the price cap from 1 April.
The projected reduction is £117 per year for a typical dual fuel household.
Annual bills are forecast to fall to £1,641 from April 1.
An earlier forecast predicted an 8% (£138) reduction.
Ofgem will confirm the official cap level by February 25 for the April–June quarter.
The reduction is linked to the Government’s decision to abolish the Energy Company Obligation (ECO) scheme.
Rachel Reeves announced the ECO scheme would be scrapped last November.
The Government pledged the change would cut £150 from average bills.
Cornwall Insight estimates actual savings at about £145 after VAT and pricing allowances.
Rising energy network operating and maintenance costs have reduced some savings.
Wholesale energy prices have increased since December.
Gas prices have been volatile due to geopolitical factors.
The Department for Energy Security and Net Zero said the Government is delivering an average £150 cost reduction from April 1.
Uswitch stated all households will see bill changes from April, regardless of tariff type.
Actual savings will depend on individual energy consumption.
End Fuel Poverty Coalition advised consumers to review unit rates and standing charges.
TotallyMoney CEO Alastair Douglas said some suppliers are undercutting the price cap.
He stated consumers could save up to £917 per year by switching suppliers.
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