Cornwall Insight has revised its forecast for the default tariff cap for October-December 2024, predicting a decrease to £1,723 annually for a typical dual fuel consumer.
This marks a reduction of nearly £40 from the previous forecast in May.
Despite this drop, the new cap would still represent a 10% increase from the £1,568 cap effective from 1st July.
The anticipated rise is attributed to an uptick in the wholesale market, influenced by geopolitical concerns and supply-demand pressures.
Looking ahead to 2025, Cornwall Insight expects the January-March cap to remain similar to the October level.
Political parties have outlined their energy policies, with short term commitments to review bill compositions and standing charges included in many manifestos.
Adjusting network costs from standing charges to unit costs could benefit low energy users and promote energy efficiency.
However, this could lead to higher costs for those in non-energy-efficient homes, affecting many vulnerable households.
Dr Craig Lowrey, Principal Consultant at Cornwall Insight said: “The drop in forecasts for October are positive, but we need to keep this in perspective.
“We are still facing an average 10% increase in bills from October and as winter approaches this will put a strain on many household finances.”
