Media Mention
This is Money
19 February 2023

European gas prices plunge to lowest level in 18 months, but households unlikely to benefit from cheaper bills until summer

The energy price cap, which protects consumers from unbridled increases, is still set to rise from £2,500 to £3,000 in April.

Tony Jordan, senior partner at energy consultancy Auxilione said: ‘Unfortunately, we’re not going to get all the benefit for the current price until the price cap decision in July.

‘The reason we won’t see it just yet is because of the time period of the calculation.’

He predicted the cap will fall to £2,000 in the summer, as lower prices start to ease the burden on struggling families.

Energy storage facilities are now at an average five-year high across Europe, which has driven wholesale prices significantly lower and dampened fears of blackouts.

However, Jordan warned that energy markets are still very ‘sensitive to global events’.

‘Things are looking up but we’re still not out of the woods yet,’ he said.

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