Media Mention
Tony Jordan
8 May 2023

Average household energy bills could fall to below £2,000 a year this summer after a slump in gas prices

Rising prices resulted in the collapse of about 30 energy suppliers in the UK from 2021 on, and led to the Government paying billions of pounds in taxpayer support.

A surge in the price of wholesale gas was also a key driver in the cost-of-living crisis, helping push inflation into double digits.

Tony Jordan at energy consultancy Auxilione said ‘fear is coming out of the markets.’ He added: ‘The gas price is about 80p a therm. Back in August, it was £7. We were forecasting some scary numbers, but the price has really come down. It is heading in the right direction.’

Energy regulator Ofgem will set the next price cap at the end of this month to cover the period from July to September.

Customers have typically been paying less than Ofgem’s level as the Government’s separate Energy Price Guarantee capped the typical household bill at £2,500 a year.

Jordan said lower wholesale gas prices would start filtering through to people’s bills by the summer, which is when the Energy Price Guarantee ends.

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