Annual energy bills for a typical household are expected to fall slightly to £1,926 from October, according to a new forecast.

Consultancy firm Cornwall Insight predicts bills could drop by £148 under a new official price cap set to be announced by Ofgem next week.

The energy price cap limits how much suppliers can charge households for each unit of energy they use.

But bills still remain far higher than before Russia’s invasion of Ukraine.

In a statement, Cornwall Insight said that the slow reduction of bills along with the “volatility” associated with the energy price cap might mean more customers look to go back to a fixed tariff for their gas and electricity.

“With so many unknowns in the energy market, each household must decide for themselves what is the best avenue for them,” its principal consultant Dr Craig Lowrey said.

It also suggested that the UK was particularly susceptible to changes in wholesale prices because of its reliance on gas imports.

A spokesman for the Department for Energy Security and Net Zero said that the UK government “will always ensure that the energy market is working for consumers to protect them from sky-high bills and that households are getting the best deal”.

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