Britain’s energy price cap to fall 14% in April – Cornwall Insight. On Wednesday, analysts at Cornwall Insight predicted that Britain’s domestic energy price cap will drop in April after a notable drop in wholesale energy costs since mid-November.
Forecasts from Cornwall Insight Based on typical consumption, Ofgem’s price ceiling will drop to 1,660 pounds ($2,100.90) in April, a 14% decrease from the 1,928 pounds annually set for the price cap to go into force in January.
The consultancy’s most recent estimate for April is lower than its earlier estimate of 1,929 pounds from November.
Craig Lowrey, Principal Consultant at Cornwall Insight, stated, “The recent stabilization of international energy markets has trickled down to April’s price cap predictions, raising hopes that this downward path will continue throughout the remainder of 2024.”
According to the consultant, the price restriction will decrease to 1,590 pounds in July and then gradually rise to 1,640 pounds starting in October.
Despite early worries, Cornwall Insights stated that the Israel-Hamas conflict and issues like possible strikes over LNG development in Australia have not yet had a significant effect on energy supply.
They said that worries about other pipeline outages, such as the breakage of the Finnish Baltic Connector, had subsided and that a relatively mild winter thus far should keep European gas storages fully stocked.
Cornwall Insights pointed out that ongoing discussions about potential changes to the price limit, such as the standing fee and bad debt collection, may impact the overall price cap level.
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