Households could be paying considerably less for their energy come April, according to the latest predictions by consultancy Cornwall Insight.

Prices for gas and electricity could drop by as much as 16% for domestic customers suggest the latest forecasts.

For an average-sized household using a typical amount of energy this change would take a yearly bill from £1,928 to around £1,620 – a saving of more than £300.

Costs, controlled by the energy price cap, are reassessed every three months to ensure customers are paying prices reflective of wholesale prices.

And in a second bout of good news – Cornwall Insight says charges throughout 2024 are also forecast to remain lower than current prices – falling to £1,497 a year in July, before rising just slightly to £1,541 in October.

Thanks to a relatively mild winter, it says, European gas stocks remain at higher than expected levels for the time of year. This, combined with fairly healthy supply conditions, has seen wholesale prices fall steadily since November.

However, Cornwall Insight says UK energy prices do remain ‘vulnerable’ to global events and any potential disruption to supplies could lead to unforeseen price fluctuations in the future.

Dr Craig Lowrey, Principal Consultant at Cornwall Insight explained: “Concerns that events in the Red Sea would lead to a spike in energy bills have so far proved premature, and households can breathe a sigh of relief that prices are still forecast to fall. Healthy energy stocks and a positive supply outlook are keeping the wholesale market stable. If this continues, we could see energy costs hitting their lowest since the Russian invasion of Ukraine.

“Though recent trends hint at possible stabilisation, a full return to pre-crisis energy bills isn’t on the horizon. Shifts in where and how Europe sources its gas and power, alongside continued market jitters over geopolitical events, mean we are likely still facing costs hundreds of pounds above historical averages for a while, potentially the new normal for household energy budgets.”