Energy bills will drop again to £1,860 a year from October when the latest Ofgem price cap comes into effect, a group has predicted.

Figures from Cornwall Insight suggest bills for a typical household will drop to £944.50 a year for electricity and £916.16 a year for gas, with a total bill of £1,860.66.

This will go up again in January, when average energy bills will rise to £1,958.81 a year, including £976.63 for electricity and £982.18 for gas.

Dr Craig Lowrey, principal consultant at Cornwall Insight, said: “The news of a relative stabilising of energy bills will no doubt leave households with mixed feelings.

“After the surge in bills seen last winter, it may bring a sense of relief to people that energy prices are currently not forecast to surge unexpectedly.

“However, there will also be disappointment with prices still well above the levels seen a few years ago – leaving many longing for more affordable options.”

The group is predicting small decreases in March and July 2024, when average bills will fall to £1,916.74 and £1,870.43 respectively.

Energy bills previously fell when the Ofgem price cap went down at the start of July, with Britons currently paying on average £2,074 a year.

Mr Lowrey warned: “The wholesale market remains the main driver of bills, and unfortunately there is no immediate prospect of prices there returning to historic averages.

“Therefore, it becomes imperative the Government and other stakeholders explore alternative measures to cater to consumers.

“This includes options to provide targeted support to the most vulnerable while promoting flexible energy solutions that encourage efficient energy usage.”

Ofgem has this week set out plans to make energy suppliers improve their service for struggling bill payers.

Energy firms would be required to keep their enquiry lines open longer and offer more temporary payment holidays.

Suppliers would be required to prioritise customers in vulnerable situations, or individuals who represent them, to make sure they get immediate help.

Neil Lawrence, director at Ofgem, said: “Suppliers are short-changing too many of their customers, who deserve better.

“Customers need more support when they are struggling and should be able to contact their supplier without frustration or undue delay when they need help.”

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