Reduced demand for gas coupled with high levels of gas storage across Europe should see baseload electricity prices in the UK drop by around 20% over the next four years, energy experts have said.

According to Aurora Energy Research’s latest forecast, carbon prices are also predicted to fall – further lowering prices to an estimated £19/MWh by 2028.

As long as the falls are reflected in domestic energy bills, the lower prices should come as some relief to households that have been battered by record-high energy prices since the Ukraine war began in 2022.

However, Aurora does not foresee further falls beyond that date due to delays at Hinkley Point C, Britain’s next nuclear power plant. While originally planned to be brought online as early as 2017, it is now not expected until 2029 at the earliest – more than a decade late and billions over budget.

It was recently warned that these setbacks could even cause an energy security crunch point in 2028 that could see blackouts across the UK.