Exact date energy bills set to FALL by £300 offering ‘light at the end of the tunnel’ for millions of households

ENERGY bills are set to fall within weeks and households are predicted to save up to £300 a year.

Ofgem's energy price cap could drop by 15% from April, according to refreshed forecasts by Cornwall Insight.

Analysts predict that typical bills will fall from £1,928 a year to £1,635 a year from April 1.

It is the consultancy’s last forecast before Ofgem announces the price cap next Friday.

Of course, as this is only a prediction the actual price cap could be higher or lower.

But the analysts use whole market data which usually means their predictions are pretty accurate.

This reduction in Ofgem's price cap would mean that a typical household will see their bills drop by £293 a year.

However, the price cap works by setting a limit on the maximum amount suppliers can charge for each unit of gas and electricity.

It's not a cap on how much you can be charged for the energy that you use - so if you use more, expect to pay more.

That's why it's always important to perform some checks before prices change to ensure that you're not paying over the odds.

The price cap is adjusted every three months to reflect changes in underlying costs, as well as inflation, and only impacts UK households on default or variable tariffs.

This still accounts for roughly 29million customers, according to Ofgem.

The forecast from Cornwall is considerably lower than the current price cap, which runs from the start of January to the end of March.

But it is marginally higher than the £1,620 that the consultancy forecasted a month ago.

The fall in prices expected in the spring comes as a result of a mild winter and high levels of gas storage in Europe.

But Cornwall Insight is forecasting that the cap will continue to decline in fall in July 1, with a small rise in October.

Dr Craig Lowrey, principal consultant at Cornwall Insight, said: "Forecasts show energy bills returning to their lowest levels in over two years, providing a much-needed respite for a nation struggling with a cost of living crisis.

"Fairly healthy gas supply across the Atlantic, coupled with high storage levels in Europe, are helping to keep bills down."

But experts say that customers will now be looking to suppliers to offer better energy tariff choices.

Richard Neudegg, director of regulation at Uswitch said: "With more than just a glimmer of hope on the horizon for wholesale energy costs, all eyes are now on suppliers to see how they will price their other deals.

"Consumers have waited long enough for better tariff choices, and desperately need the opportunity to take advantage of cheaper rates."

We've listed eight steps to take now to save on your energy bills.

1. Take a meter reading

Energy suppliers usually require you to take regular meter readings from your gas and electricity meter to work out how much they should charge you.

Customers who don't do this are billed on estimated usage and will likely pay more.

So if you don't have a smart meter, ensure that you regularly submit meter readings to your supplier.

Those with smart meters don't need to send a manual reading because they're sent to suppliers automatically.

Submitting a meter reading just before the rates change will ensure you're charged the correct amount for the energy you've used. 

We've previously explained how to take a reading from different types of electricity and gas meters.

2. Check your direct debit

If you pay your energy bill by direct debit, this monthly amount should be "fair and reasonable".

If you don't think it is, you should complain directly to your supplier in the first instance.