Energy bills are 'still too high' for many homes and businesses

Household energy bills could drop this summer but experts have warned that households and manufacturers may still struggle to pay gas and electricity costs.

- Jillian Ambrose Lauren Almeida

The industry regulator's quarterly price cap is expected to fall in July by an average of £129, or 7%, according to forecasts from Cornwall Insight, a leading energy consultancy. It has predicted that the cap will fall to £1,720 a year for a typical dual-fuel household this summer, from £1,849.

The modest drop would return the energy price cap to its levels at the beginning of the year but this is still about 60% higher than where the cap was set in the summer before Russia's invasion of Ukraine caused a global energy market surge.