Cornwall Insight has forecast a fall in energy prices this summer, predicting that the Default Tariff Cap for July 2025 will drop to £1,712 per year for a typical dual-fuel household.
This represents a 7% decrease from April’s price cap of £1,849, meaning customers could see an average annual saving of £137.
The latest forecast is slightly lower than previous predictions made in February, bringing the July cap below the current £1,738 rate.
However, prices will still remain significantly higher than historic averages. The Office for Budget Responsibility (OBR) recently highlighted that the April price cap increase will contribute to an expected rise in inflation over the summer.
Against this backdrop, Cornwall Insight’s latest projection could be a welcome relief for households and may signal a broader positive trend for the economy.
Looking ahead, expect prices to rise slightly in October before falling again in January 2026. However, ongoing volatility in global energy markets means these predictions are subject to change.
Over the past month, geopolitical events have played a major role in market movements. Hopes for a ceasefire between Russia and Ukraine in February initially brought some stability but uncertainty over the role of the US in any agreement soon reignited concerns.
In early March, energy markets dipped again after the European Union announced it would allow member states some flexibility in replenishing gas storage levels ahead of winter.
Although prices started rising soon after, the combination of warmer weather and reduced gas demand from Asia has helped push them back down.
Cornwall Insight expects geopolitical tensions, market fluctuations,and broader macroeconomic factors to continue driving price volatility in the months ahead.
As a result, energy consumers should remain prepared for potential shifts in pricing as global conditions evolve.
