Home energy bills may not fall for up to two years despite drop in wholesale prices

Wholesale gas costs, which drive retail prices higher, have fallen in recent months following a mild winter.

The European Union reduced its reliance on Russian gas following its invasion of Ukraine, which pumped up wholesale prices to multiple of their levels prior to the war.

Households could be waiting up to two years before they see a significant drop in energy costs, leading energy suppliers have said.

Wholesale energy costs, which drive retail prices higher, have fallen rapidly in recent months following a mild winter and increasing levels of storage. However, consumers are unlikely to see the effect of this drop in their incoming utility bills.