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Households in the UK could see their energy bills drop from January, according to an energy consultancy.

According to new predictions, household energy bills are set to fall slightly at the start of 2026.

Cornwall Insight, an energy consultancy, has forecasted that Ofgem 's price cap will dip by 1 per cent, resulting in a £22 reduction on the average annual bill of £1,733 for a typical household from January.

However, the firm's analysts expect the price cap to increase again from April.

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Craig Lowrey, principal consultant at Cornwall Insight, said: "January's price cap dip might look like good news but it's only part of the picture."

He added: "Bills are still well above pre-crisis levels and are set to clim

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