The latest forecasts paint a better picture than was initially predicted. Consultancy firm Cornwall Insight now estimates slight declines quarter-on-quarter from January 2025.

The energy price cap is set by government regulator Ofgem each quarter. Its purpose is to protect consumers by limiting what suppliers may charge per unit of energy and their standing charges.

New Forecast For Q1 2025

While known for their predictive accuracy, Cornwall Insight recently went back on predicting a 3% rise from January.

The consultancy firm now predicts a 1% drop in the energy price cap from January followed by slight drops for the second and third quarters of 2025.

Cornwall Insight may adjust estimates further depending on geopolitical and other wider-reaching factors. However, latest adjustments point toward a slight rise in optimism for 2025.

Q4 2024 Price Cap And Recent Predictions

The price cap rose by around 10% between the July-September period to October-December period this year. The increase was largely in response to rising wholesale energy prices and global instability.

This represented an increase in the electricity price cap per unit from around £0.22 per kWh to £0.25 per kWh. This was along with a gas price cap per unit rise of approximately £0.05 per kWh to £0.06 per kWh.

Cornwall Insight had predicted a 9% rise in the price cap for this period, as the latest example of their predictive accuracy.