Finally! Energy bills to fall for first time since Putin invasion

HOUSEHOLD energy bills could finally fall this summer for the first time since Russia’s invasion of Ukraine.

Typical annual bills are due to rise from £2,500 to £3,000 from April 1 under the Government’s Energy Price Guarantee capping regime. However, a recent sharp fall in wholesale gas and electricity prices could see this fall to around £2,200 in July and remain there for next winter.

Wholesale energy prices have fallen sharply in recent weeks on the back of the relatively warm winter across Europe and high levels of gas held in storage.

Many countries have also found alternative supplies of gas from countries other than Russia. The predictions, from energy industry analysts Cornwall Insight, are much lower than previous forecasts. Typical annual bills were around £1,300 in January last year, before Russia’s invasion of Ukraine and Putin’s decision to cut supplies to Europe and associated sanctions.

The fall in wholesale prices will also deliver massive savings to the Government, which would no longer be required to spend billions of pounds subsidising bills in the second half of 2023 and beyond.

Dr Craig Lowrey, principal consultant at Cornwall Insight, warned people not to assume the crisis is now over and that bills will continue to fall, saying: ‘There is a long way to go before anyone can be certain what the true unit rates will be beyond the summer. Nothing is guaranteed in this new European energy market.’

It comes after charity National Energy Action said an alarming 45 people per day died from cold homes last winter, warning that the figure will be higher for the current winter given that bills have doubled.