Energy costs are expected to drop to £1,660 in April

A new prediction indicates that a typical household's annual energy expenditures would decrease by £268 in April.

Bills may be as low as £1,660 under the official price ceiling imposed by the UK's energy regulator, Ofgem, according to consultancy company Cornwall Insight.

The maximum amount that suppliers can charge homes for each unit of energy they consume is set by the energy price cap.

Analysts at Cornwall predicted that the April decrease would be caused by a large drop in wholesale energy costs.

The anticipated decline coincides with millions of people expecting higher bills in January when the next price cap takes effect.

The average dual-fuel yearly home bill will increase by £94 in January, from £1,834 to £1,928 according to energy regulator Ofgem.

According to Cornwall's most recent estimate, expenses would decrease over the year, reaching £1,590 in July before a minor uptick to £1,640 in October.

The battle between Israel and Hamas, the disruption at a gas pipeline in Finland, and the attacks at an Australian liquefied natural gas facility were stated to have "failed to materially impact energy supplies" thus far.

According to Cornwall experts, these elements, together with the fact that the winter has been rather mild thus far, have left European gas storage levels above projections for the rest of the season, which has helped to lower wholesale prices.

Principal consultant Dr Craig Lowrey of the organisation stated that the decline "may offer a small light at the end of the tunnel".

The maximum price that suppliers can charge consumers per unit of gas and electricity is determined by the energy watchdog, Ofgem.

(Sources: bbc.co.uk)