However, analysts at Cornwall Insights that costs are “set to remain high” in 2023 despite this drop. According to the data firm, a significant fall in energy prices are the primary contributor to this updated estimate. As it stands, the price guarantee is at £2,500 but during his Autumn Statement, Chancellor Jeremy Hunt said it would increase to £3,000 in April 2023 for 12 months.
Between the second quarter of 2023, from April to June, the average household energy bill with typical usage is forecast to be £3,545.
In comparison, between July and September of this year, average gas and electricity costs are forecast to be around £2,800.
This will be an estimated £200 below the revised energy price guarantee this year which will come as a relief for families.
Finally, households with average energy usage are forecast to see their costs sit around £2,835 between October and December.
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Introduced last year, the price guarantee was implemented to better protect customers from high energy prices.
Said high prices came following external pressures in the wholesale gas and electricity market, including the war in Ukraine.
It should be noted that overall bills are not capped under the initiative, meaning the £2,500 and £3,000 figures only refers to households with typical energy usage.
Through the policy, the Government compensates suppliers for the difference between the energy price cap and price guarantee.
More to follow…