Cornwall Insight’s latest price cap prediction for October to December 2023 has shown a £142 decrease from the current cap.
Calculated using market closing prices on 12 June 2023, Cornwall Insight has predicted that the cost of electricity for a typical household will be £1,932.59 per year.
As energy wholesale prices slowly come down from the dizzying heights experienced since the wholesale gas crisis began in 2021, Cornwall Insight’s predictions have mirrored this descent; for example the price cap prediction for Q4 2023 in February was £2,161.09.
Despite the relief induced by the downward trajectory of price caps, it is worth noting that prices are still well above pre-pandemic levels and are unlikely to go down to the same price in the short-term.
“Whilst the falling price cap is a relief for households, this gas crisis will linger, with wholesale price forecasts suggesting that the average household energy bill might not get below £1,700 a year for the rest of this decade – that’s around £600 (about 50%) above where it was before the gas crisis,” said Simon Cran-McGreehin, head of analysis at the Energy and Climate Intelligence Unit (ECIU).
“If we don’t get on with insulating homes, installing heat pumps and building more renewables, gas demand will remain high and that means bills will too.”