UK energy bills set to soar despite £1,000 drop in price cap

The amount that people pay for their energy is currently regulated by the Government’s energy price guarantee

Gas and electricity prices will start to drop for households from the start of July, but not before jumping in April. (Gareth Fuller/PA) (PA Wire)

People across Britain are set to see the cost of each unit of electricity and gas they use soar from the beginning of April, the final forecast from energy consultancy Cornwall Insight has said.

The Ofgem price cap on energy bills, which regulates what energy suppliers are able to charge, but not necessarily what households pay, will fall by around £1,000 to £3,295, the analysts said.

But, because of the way the Government’s energy support works, households will be left paying an extra 20% for their energy and will also not get monthly payments of £66 or £67 towards their energy bills.