ENERGY bills are set to fall by £137 a year this summer following a hefty rise in the coming days.
Cornwall Insights predicts the yearly cost of running your gas and electricity will fall to £1,732 this July, marking a 7% drop on April’s price cap.
Energy bills will fall this July according to Cornwall Insights[/caption]
It will mark the first time over three quarters that energy bills will fall for customers.
Dr Craig Lowrey, Principal Consultant at Cornwall Insight, said: “The latest forecast drop will bring some relief to households and the government, offering a welcome sign that energy prices are moving in the right direction.”
Looking ahead, experts at the firm predict bills to rise again in October, before falling again at the star of 2026.
In practice, most people will use less energy in the spring and summer months.
He added: “However, we mustn’t get ahead of ourselves. While prices are falling, recent patterns show the impact that wholesale market volatility can have on bills in the space of just a few days.”
Around 26million households on standard variable tariffs (SVTs) in England, Wales and Scotland which are subject to the price cap.
It comes as households are bracing for a the average energy bill to rise by £111 a year, or £9.25 a month this April.
The latest rise is because of an increase in gas prices across Europe, caused by a slump in the amount of gas that is held in storage across the continent.
Despite the rise, average bills remain considerably lower than during the peak of the energy crisis, which was fuelled by Russia‘s invasion of Ukraine in February 2022.
The war caused a spike in an already turbulent wholesale energy market, driving up costs for suppliers and customers.
Before the energy price shock, a standard annual bill was £1,084.
How do I calculate my energy bill?
BELOW we reveal how you can calculate your own energy bill.
To calculate how much you pay for your energy bill, you must find out your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.The standing charge is a daily charge that is paid 365 days of the year – irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details, you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type – this will give you your usage costs.
You’ll then need to multiply each standing charge by 365 and add this figure to the totals for your usage – this will then give you your annual costs.
Divide this figure by 12, and you’ll be able to determine how much you should expect to pay each month from April 1.
