Price cap could fall below £3,000 from April, Ofgem boss says

The energy price cap might drop below the £3,000 mark as early as April, the boss of Ofgem has said in a prediction that could save the Government billions of

pounds. Jonathan Brearley said that it was “possible” that falls in the wholesale cost of gas and electricity could mean that bills would fall below that level for the

average household. It is more optimistic than recent projections from independent analysts at Cornwall Insight, who last week forecast the price cap would still top £3,200

in April before falling significantly in July. If the price cap falls below £3,000 for the average household in April it would not mean much for households, as the

Government has already overridden the price cap to ensure that average bills do not rise above that level. It could save the Government billions of pounds that it has

promised to pay suppliers to make up the difference between what they are allowed to charge customers and the price they have to pay to buy energy. Although gas prices do

remain volatile, the price cap level may fall below the energy price guarantee level in July, and possibly do so as early as AprilJonathan Brearley, Ofgem Speaking at an

Institute for Government event, Mr Brearley said predictions were still very uncertain, but sounded a rare note of optimism for troubled bill payers. “On our current

projections, although gas prices do remain volatile, the price cap level may fall below the energy price guarantee level in July, and possibly do so as early as April,” he

said.