As wholesale gas prices continue to fall, milder weather in the UK and across Europe is resulting in reduced demand for heating from domestic households and businesses.

Reflecting the change, Ofgem has reported energy bills could dip below £3000 in April, though the regulator does caveat its welcome announcement with a warning that costs could remain volatile for much of 2023 and beyond.

This news is set against the backdrop of a report from the Federation of Small Businesses that about one in four small companies will have to close, downsize or restructure their operations due to a cut in energy bill subsidies, with 30 per cent receiving a maximum of £49 in relief per annum.

Speaking on the Go Radio Business Show Lord Willie Haughey welcomed the announcement from Ofgem.

“It looks like energy prices are plummeting and this is great news,” said Lord Haughey. “For all the small and large businesses out there, get close to your energy provider because now suddenly all of these deals will be appearing from nowhere and I’m told they are substantial.

“Let me give an example of my own personal experience. Two weeks ago I found my energy had gone up from 26p kilowatt an hour up to one pound – four times the cost. However, we’ve also had calls from all sorts of people we’d been asking for months and months about contracts and fixed rates and got nothing. There were no deals. But in the past few days we’ve had offers we can’t believe.

“So what I would say to everybody out there, if you have been talking to people and you’ve given up, go back. There are deals to be had.

“We’re talking about deals that go back to prices where they were before.”