Our response to the July 2024 energy price cap prediction

Independent energy research firm Cornwall Insight has published its July 2024 energy price cap prediction, with an expected reduction of 7% compared to the current price cap.

This means annual energy bills for a typical dual-fuel household paying by direct debit are expected to be around £1,574, a reduction of £116 from the current price cap level. The predicted price cap is subject to additional costs yet to be confirmed by Ofgem.

On Friday 24 May, Ofgem will confirm the actual price cap on the unit costs of gas and electricity from 1 July to 30 September 2024.

Responding to Cornwall Insight’s energy price cap prediction, Mike Thornton, chief executive of Energy Saving Trust said: 

“While it’s positive to see energy prices coming down for the next quarter, there’s much more this and future governments must do to both permanently lower energy costs and support progress towards net zero.

“A key issue is that the relative cost of electricity has increased to around four times as high as the cost of gas. The continuing distortion of electricity prices is undermining the roll out of heat pumps, slowing down the move away from expensive and polluting fossil fuels in our homes.

“While the UK Government has committed to reviewing the way gas and electricity is priced more broadly, disappointingly it’s unlikely we’ll see tangible changes soon. A decision needs to be made in the short term to lower heat pump running costs and give people and industry a clear signal that low carbon heating will be part of a net zero future.

“There’s no time for delay. No one should take this lower price cap as a sign of stability, with forecasts showing that energy prices are set to rise again this autumn and will be staying high overall for the next decade.

“We still urgently need policies that support people to use less energy and install cost effective energy efficiency improvements in their homes, to bring down energy bills and carbon emissions for the long term.”