Energy bills will fall by £300, offering 'light at the end of the tunnel'
Energy bills are expected to drop within weeks and households are expected to save up to £300 a year.
Ofgem's energy price cap could fall by 15% from April, according to updated forecasts from Cornwall Insight.
Analysts predict that average bills will fall from £1,928 per year to £1,635 per year from April 1.
It is the consultancy firm's latest forecast before Ofgem announces the price cap next Friday.
Since this is just a prediction, the actual price ceiling could of course be higher or lower.
But the analysts use full market data, which usually means their forecasts are quite accurate.
This reduction in Ofgem's price cap would mean an average household will see their bills fall by £293 per year.
However, the price cap works by placing a limit on the maximum amount suppliers can charge for each unit of gas and electricity.
There is no limit on how much you can be charged for the energy you use. So if you use more, expect to pay more.
That's why it's always important to do some checks before prices change to make sure you're not paying too much.
The price cap is adjusted every three months to reflect changes in underlying costs and inflation, and only affects UK households on standard or variable rates.
According to Ofgem, this still accounts for around 29 million customers.
The forecast from Cornwall is significantly lower than the current price ceiling, which runs from early January to the end of March.
But it is slightly higher than the £1,620 the consultancy forecast a month ago.
The price drop expected in the spring is the result of a mild winter and high gas storage levels in Europe.
But Cornwall Insight predicts the limit will continue to fall in the autumn on July 1, with a small increase in October.
Dr. Craig Lowrey, chief adviser at Cornwall Insight, said: 'Forecasts show energy bills returning to their lowest levels in more than two years, providing a much-needed breather for a country struggling with a cost of living crisis.
“Reasonably healthy gas supplies across the Atlantic, combined with high storage levels in Europe, are helping to keep bills low.”
But experts say customers will now look to suppliers to offer better energy rate choices.
Richard Neudegg, regulatory director at Uswitch said: “With more than just a glimmer of hope on the horizon for wholesale energy costs, all eyes are now on suppliers to see how they will price their other deals.
“Consumers have waited long enough for better rate choices and desperately need the opportunity to take advantage of cheaper rates.”
We have listed eight steps that you can take now to save on your energy bill.
1. Take a meter reading
Energy suppliers usually require you to regularly read your gas and electricity meters to determine how much they should charge you.
Customers who don't do this will be billed based on estimated usage and will likely pay more.
So if you do not have a smart meter, make sure that you regularly report the meter readings to your supplier.
Those with smart meters do not need to send manual meter readings as these are automatically sent to suppliers.
If you provide a meter reading just before the rate change, you can be sure that you will be charged the correct amount for the energy used.
We have previously explained how to read different types of electricity and gas meters.
2. Check your direct debit
If you pay your energy bill by direct debit, this monthly amount must be 'fair and reasonable'.
If you believe this is not the case, you should complain directly to your supplier in the first instance.
If you are not satisfied with the outcome, you can take this to the independent Energy Ombudsman dispute, but there are a few steps before you reach that stage.
Your supplier must clearly explain why he has chosen that amount for your direct debit.
If you have credit in your account, you have every right to get it back – although some experts advise keeping it that way over the summer so that your bills don't increase in winter as you use more energy.
Your supplier must pay you back or explain exactly why otherwise, and the regulator, Ofgem, can fine suppliers if they don't.
If you dispute a bill, taking the meter reading is a must.
If it is lower than your estimate, you can ask your provider to reduce your monthly payment to a more appropriate amount.
But be careful not to end up in debt later with a larger catch-up bill at the end of the year as the underpayments pile up.
If you are unable to negotiate a lower payment, you can file a complaint with the Energy Ombudsman.
3. Check for new energy deals
There are currently fixed deals on offer that are priced close to or slightly higher than the standard variable rates, but they offer peace of mind that your rates won't change for 12 months.
But you may have to pay more if prices drop in the future. So it is important to assess the true value of these offers.
Do a comparison on Uswitch.com to see personalized options based on your usage and region.
4. Check if you qualify for support
Households should check whether they are eligible for energy support schemes or subsidies.
The government runs the Warm Home Discount scheme, which provides £150 of energy credit to help with bills during the winter, and has recently introduced the Great British Insulation Scheme.
Municipalities also offer the Household Support Fund.
Many suppliers have customer support funds that offer home insulation, energy efficient white goods and cash subsidies.
Here is a list of schemes currently open:
- British Gas Energy Trust Individuals and Family Trust
- British Gas Energy Trust
- EDF Customer Support Fund
- E.ON and E.ON Next subsidies
- Octopus Energy Assist Fund
- OVO energy
- Scottish Power Hardship Fund
5. Change your thermostat and boiler settings.
Check the temperature on your thermostat and adjust it if necessary.
The World Health Organization suggests that most healthy people should heat their homes to 18 degrees Celsius.
Reducing the flow rate on combination boilers to around 60 degrees Celsius can reduce heating costs, and you won't notice the difference.
Depending on the type of boiler you have, this should save you around £112 per year.
6. Change your radiator settings.
Get ahead of the first cold wave by checking whether your radiators are still in order.
Bleeding your radiators will prevent cold spots, and you may want to consider turning down (or closing) the radiator taps in the rooms you use less often.
According to British Gas, the average household can save up to £75 annually if they have thermostatic radiator valves fitted to all their radiators.
Valves can be picked up for less than $10 and are easy to replace yourself if some of yours don't work.
We previously explained what the numbers on these valves mean and how to adjust them for optimal efficiency.
It's also important to keep your radiators clear of obstacles, such as furniture, for maximum warmth.
7. Change the way you use your devices.
By tracking your usage, you can see how changing some habits can make a difference in your home.
Whether it's setting your washing cycle to a lower temperature or eco mode, throwing out the tumble dryer or running the dishwasher on a full load, small changes can have a big impact on your next meter reading.
For example, which one? says that washing clothes at 30°C is generally fine for clothes that are not soiled – this could reduce energy consumption by 38% on average compared to washing at 40°C.
And a wash at 20°C uses 62% less energy.
Here are also some ways to reduce dishwasher costs.
8. Check for drafts
Draft proofing is a quick and cost-effective way to prevent heat from escaping, saving you around £50 per year.
Placing door seals between doors and frames, attaching brushes under drafty exterior doors and using chimney balloons keep the heat in.
Thermal and lined curtains also prevent heat loss.
Check out seven ways you can instantly make your home draught-free this winter.
Do you have a money problem that needs to be solved? Get in touch by emailing money@the-sun.co.uk.
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