Experts predict a slight reduction in energy costs for early 2025.
Consultancy Cornwall Insight has estimated that the default tariff cap will decrease in January 2025.
This follows an increase to an average of £1,717 per year for the final three months of 2024.
The new forecast indicates a 1% drop to £1,697 for a typical dual fuel consumer.
Previous forecasts from August 2024 suggested that prices would rise in January.
However, the outlook has improved due to several factors, including the EU meeting its gas storage targets, a strong global LNG supply, and increased confidence in gas and electricity imports.
In addition, prices are expected to decline slightly in both the second and third quarters of 2025.
This will be good news for consumers who were worried about further increases in the new year.
Despite the forecasted drop, energy bills are still significantly higher than they were before the crisis.
Some experts are calling for changes to the energy price cap, arguing that it obscures deeper issues in the energy market and reduces the incentive to address them.
Ofgem is currently reviewing the price cap and other consumer protection measures, with findings expected soon.
