The prices providers pay for energy – known as wholesale prices – have fallen to historic lows with gas prices dropping by 20% over the last year, and electricity prices down 15% over the same period.
Energy firms may have promised to freeze prices after the Government cut green levies – but the cost of fuel will still rise in the long term, energy experts are warning.
Households should brace themselves for energy price hikes, not just over the coming year, but over the next five years too, with one energy expert predicting bills could double.
There are fears the price of energy could jump later this year, which has prompted some experts to urge worried households to consider fixing their gas and electricity prices.
Energy supplier Ovo Energy is axing plans to increase costs for its variable rate customers due to a drop in the price it pays for gas and electricity.