Energy Bills to Lower More than Previously Expected
Cornwall Insight has updated its forecast for energy prices in 2024, and is now predicting a 16% drop in April. After the 5% increase at the start of the year, this equates to an 11% drop in prices seen at the end of 2023.
A Change in Predictions
Despite nothing being set in stone, Cornwall Insight is usually fairly accurate at estimating where the energy price cap will go. According to their latest release, this means that typical energy usage will drop from £1,928 to £1,620 in a matter of months.
This news will offer relief for the most struggling of households, but although quite a significant drop, levels will be higher than what was seen before the start of the energy crisis.
“Healthy energy stocks and a positive supply outlook are keeping the wholesale market stable. If this continues, we could see energy costs hitting their lowest since the Russian invasion of Ukraine.”
Craig Lowrey – Principal Consultant at Cornwall Insight
Further optimism has been found from the mild winter, imports of liquefied natural gas from America and low prices in the Asian market. Due to falling prices and an abundance of supply, a drop in energy prices for consumers could very well be due.
How the Rest of 2024 Might Look
As Lowrey stated, the wholesale energy market is looking good, especially when it comes to reserves. This means that almost £300 has been knocked off their previous predictions for later on in the year, should these trends continue.
You can see how much Cornwall Insight has updated its forecast in the interactive graph below.
This now means that, if Ofgem agrees the markets are in as healthy a position as Cornwall Insight is suggesting, the price cap could fall as low as £1,497 in July, and then rise only up to £1,541 in October. This is much more optimistic than the £1,833 previously predicted for the end of 2024.
How the Energy Price Cap Works
Perhaps misleadingly named, the price cap only suggests average amounts households could pay a year for their energy. It doesn’t advertise how much everyone will pay. Every unit of energy is capped to a certain amount, so if you use more, you will be charged more.
If you’re looking to cut your energy usage, or you already have been, the less you use, the less you will be charged. This doesn’t account for standing charges. Everyone has to pay for the privilege of being connected to the gas and electricity grid, whether energy is used or not.
It was recently announced that energy bills could rise by £17 to help energy companies continue to operate. There’s also the possibility that you could clear energy bill arrears if you are in debt.
How You Can Get Financial Help
There are many ways in which you can help your financial situation. At Money Back Helpdesk, we can assist.
Unaffordable Lending
If you’ve had store credit or a lender has increased your limit without consulting you, you could be eligible to make a claim for unaffordable lending. Struggling to pay your debts? See if claiming unaffordable lending could work for you.
Mis-sold PCP
In the past, car salespeople were guilty of bumping up interest rates to increase the amount of commission they could receive. A whole wave of claims could be due to hit the market in regards to mis-sold personal contract purchase (PCP) or hire purchase (HP).
The FCA is currently investigating whether these claims should go ahead.
Housing Disrepair
Is your landlord not conducting repairs on your property? Are they refusing to act? You could make a claim for housing disrepair. This legally forces them to fix faults and could compensate you for the trouble.