A closely watched forecast suggests that while the taxpayer may be off the hook for energy support to households from the summer, bills will still be very high by historical standards.
introduced by Liz Truss's short-lived government on 1 October, protects families from rises in energy costs by limiting the amount energy companies can charge per unit of energy used.
Prices have already fallen from the high in August but it will take time for the effects of price decreases to work their way to customers. Full effects will not be seen until the third quarter of the year, from July to September, as energy suppliers buy energy ahead of time and falling day to day prices have a limited impact in the short-term.
"While it is positive to see a drop in the price cap forecast, household bills are set to remain high," said Dr Craig Lowrey, principal consultant at Cornwall Insight said.
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