Energy bills are predicted to finally fall from this summer with a key announcement by Ofgem due next week.
Household energy bills are currently covered by the Energy Price Guarantee (EPG) which is set at £2,500 a year for the typical household paying by direct debit.
This has effectively replaced the Ofgem price cap, which works in a similar way and is set at £3,280 a year.
You'll be on the EPG if you're on a standard variable rate (SVR) tariff, which most people are now on due to a lack of cheaper fixed rate deals.
But when will energy bills finally start to fall? Here are the latest predictions from analysts.
Cornwall Insight today (May 19) is currently predicting the Ofgem price cap will drop to £2,053.77 a year in July.
If this happens, then prices will fall below the EPG for the first time since it was introduced in October 2022.
Cornwall Insight then expects another drop to £1,975.70 a year from October.
Ofgem will announce its price cap for July 1 to September 30 next week on Thursday, May 25.
Despite energy bills looking set to fall, what we pay for gas and electricity is still hideously high compared to a year and a half ago.
The Ofgem price cap stood at £1,277 in October 2021, before it rose to £1,971 in April 2022.
You should also keep in mind that both the Ofgem price cap and EPG do not set an absolute limit on how much you can pay for energy.
Instead, they set a limit on what you can be charged for units of gas and electricity, plus the daily standing charge.
The headline figures are used to illustrate what someone with typical usage can expect to pay over a year.
This means you could can end up paying more or less, depending on how much energy you use.
How you pay for your energy also has an impact on what you’ll pay.
Direct debit is currently the cheapest way to pay - with paying on receipt of bill the most expensive.
The Government has confirmed prepayment households - those who are typically on low incomes - will no longer pay more than someone using direct debit from July.
British Gas has decided to bring in this rule earlier, with it coming into effect for its customers from April.
