# Energy costs for most British households to fall 18% from July -Cornwall Insight
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-19
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: British Household Energy Costs Expected to Fall 18% in July
Meta Description: Get ready for a significant 18% drop in energy costs for UK households from July, with Ofgem expected to announce a price cap cut next week. Save money on your
URL: https://financedigest.com/energy-costs-for-most-british-households-to-fall-18-from-july-cornwall-insighthtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-05-19t121547z1lynxmpej4i0hcrtroptp4britain-energy-prices-1736813991482-compressed.jpg)

LONDON (Reuters) – Energy costs for most British households are expected to fall around 18% from July with regulator Ofgem poised to announce a cut in its price cap next week, analysts at energy consultancy Cornwall Insight said.

The government has guaranteed to keep average household energy bills below 2,500 [pounds](https://www.financedigest.com/britains-co-op-profit-slides-after-petrol-forecourt-sale.html) ($3,155) a year until the end of June to help with a cost-of-living squeeze after wholesale energy prices hit record highs following Russia’s invasion of Ukraine.

Cornwall Insight forecasts Ofgem’s price cap will fall to 2,054 pounds a year for average use, saving an average household around 446 pounds a year.

“As many people continue to suffer from the cost-of-living crisis, this will hopefully [bring some cautious optimism that the era of exceptionally high energy](https://www.financedigest.com/eseye-collaborates-with-solarnow-and-amazon-web-services-to-help-bring-solar-energy-to-remote-regions-in-east-africa.html "Eseye Collaborates with SolarNow and Amazon Web Services to Help Bring Solar Energy to Remote Regions in East Africa") bills is behind us,” said Craig Lowrey, Principal Consultant at Cornwall Insight.

Despite the expected drop he warned [household energy costs](https://www.financedigest.com/factbox-europes-efforts-to-shield-households-from-soaring-energy-costs.html "Factbox-Europe’s efforts to shield households from soaring energy costs") are likely to remain well above pre-pandemic levels for the near future.

“Those hoping to [see a return to the kinds of bills](https://www.financedigest.com/jd-sports-sees-bills-free-young-shoppers-boosting-profits.html "JD Sports sees bills-free young shoppers boosting profits") seen at the start of the decade will be disappointed. Regrettably, it looks as if these prices may become the new normal,” Lowrey said.

The [price cap in April 2020 was set](https://www.financedigest.com/greece-to-set-cap-on-electricity-prices-to-relieve-consumers-pm.html "Greece to set cap on electricity prices to relieve consumers- PM") at 1,162 pounds a year.

Cornwall [Insight forecast](https://www.financedigest.com/pharmaceutical-packaging-equipment-market-set-to-surge-significantly-during-forecast-period-tmr-insights.html "Pharmaceutical Packaging Equipment Market Set to Surge Significantly During Forecast Period – TMR Insights") the cap will fall again slightly in October, to an average of 1,976 pounds a year before edging up to 2,045 pounds a year in January 2024.

Ofgem will announce the [price cap](https://www.financedigest.com/eu-seeks-to-break-impasse-over-gas-price-caps-no-regret-plan-floated.html "EU seeks to break impasse over gas price caps, ‘no regret’ plan floated") for the July-September period on May 25.

($1 = 0.7923 pounds)

(Reporting By Susanna Twidale; Editing by Kirsten Donovan)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---