At last some good news on energy prices - OFGEM price cap is going down (2024)

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After some drops last year, which didn't have a massive impact, as it only dropped to £1,928 on 1st Dec. 2023, well below the government's price guarantee of £2,500 during the winter of 21/22, but we also lost the non-means tested £400 winter fuel payment, so the real saving was only £172.

It's just been announced that it's dropping by about 12% from 1st March, reducing it from £1,928 to £1,690.00, a drop of £238.00

In addition, Cornwall Insight predicts that trend is currently expected to persist throughout the year, falling to £1,590 in July before a slight increase to £1,640 from October, which if it's right, next Oct will be down by a total of about £460 compared to Oct. 2021 when in real terms it was £2,100 (government's price guarantee of £2,500 - £400 winter fuel payment).

Forecasts for the April 2024 Default Tariff Cap (price cap) show a fall of 14% in the second quarter of the year, with a typical dual fuel consumer1 expected to pay £1,660 per annum, a £268 decrease from January bills of £1,928. This trend is currently expected to persist throughout the year, falling to £1,590 in July before a slight increase to £1,640 from October.

Since mid-November, wholesale energy prices have experienced a significant decline, triggering the anticipated drop in the price cap. Contrary to initial concerns, the Israel-Hamas conflict and problems such as potential LNG production strikes in Australia have as yet failed to materially impact energy supplies. Additionally the absence of further pipeline disruptions, similar to the Finnish Balticconnector rupture, further bolstered confidence in energy security. These factors, coupled with a relatively mild winter to date, have left European gas-in-store levels above expectations for the remainder of winter. This situation has helped to drive down wholesale prices, as seen in the current forecasts of the price cap.

Price cap predicted to fall by 14% in April - Cornwall Insight

Forecasts for the April 2024 Default Tariff Cap (price cap) show a fall of 14% in the second quarter of the year, with a typical dual fuel consumer1 expected to pay £1,660 per annum, a £268 decrease from January bills of £1,928.

www.cornwall-insight.com

 

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In unrelated news an election is expected sometime this year

 

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In unrelated news an election is expected sometime this year

Nowt to do with that, it's been long expected as new supply lines of gas were being introduced to replace what was no longer coming from Russia, it's all down to the wholesale price of gas* on the international market, completely outside the control of the UK government.

* About 34% of our electric still comes from gas power stations.