Major forecaster and energy consultant Cornwall Insight had predicted an increase to the price cap in October (albeit a smaller one than was announced today).
It expects better news will come when Ofgem announces the cap that will come into force in January.
The cap is reviewed every quarter, so the changes announced today will only be enforced until 31 December.
Cornwall Insight predicts the cap will fall from £1,755 to £1,712 at the start of next year as wholesale prices come down further.
At the moment, it thinks the regulated asset base – a levy that supports investment in new nuclear power stations – will add around £10 a year to a typical bill.
That shouldn’t stop bills falling next year, though – and one expert explains it’s difficult to balance investment and the cost of bills.
“There is better news on the horizon with bills currently expected to ease in January, driven by a forecast fall in wholesale prices,” Dr Craig Lowrey, principal consultant at Cornwall Insight, says.
“Normally, that drop would have meant even lower bills.
“However, rising policy costs, such as funding for new nuclear projects, are keeping bills a little higher.
“This is a difficult trade-off – after all, everyone wants to see bills come down.
“However, the challenge we face is clear: if we want to build a resilient, low-carbon energy future, we must be prepared to invest in it today.”
