Predictions for the April 2024 energy price cap have continued to decrease, showing a £40 annual drop since December, despite disruptions in the Red Sea.
The forecast indicates a 16% quarter-on-quarter decrease, with a typical dual fuel consumer expected to pay £1,620 annually, saving £308 compared to the current £1,928 per year.
According to Cornwall Insight’s projections, prices will remain lower throughout 2024, hitting £1,497 p/a in July before a slight rise to £1,541 p/a in October.
Factors contributing to the lower prices include European gas stocks remaining higher than expected, reflecting a mild winter and favourable supply conditions.
Wholesale prices have fallen since November due to healthy supply and demand conditions.
Concerns about disruptions to European gas supply, with some LNG shipments diverted from the Red Sea, have been mitigated by the UK’s reliance on well supplied US LNG cargoes via the Atlantic market.
