Gas and electricity Updated:
Energy prices could be cut by as much as 10% by the end of the winter, giving financially stretched Britons a welcome boost.
The forecast from Energyhelpline.com comes after plummeting wholesale prices saw small supplier Ovo cut prices by 5% last week and Co-op Energy pledge reductions of 3% from February.
During the recent raft of price increases, which were implemented by all six of the UK's major energy firms, soaring wholesale prices were blamed.
However, since a peak in the summer, wholesale prices have fallen by 27%.
And with two of the smaller suppliers committing to cutting prices, there is hope that customers could soon benefit from a price-cutting war.
"The recent price reductions by two small suppliers and the plunge in wholesale energy prices mean residential price cuts of 5-10% could be just around the corner," said Mark Todd, director of Energyhelpline.com.
Such a price cut could save households an average of £135 a year on their annual fuel bills.
"A fall in electricity and gas bills could happen before the winter is out but we also need to strike a note of caution as in the past falls in wholesale prices have not meant similar percentage drops for residential ones."
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