Domestic energy prices are forecast to fall in July, reversing three consecutive increases in regulator Ofgem’s price cap.

The annual bill of a household using a typical amount of gas and electricity will fall by £129 a year, a drop of nearly 7%, analysts at the consultancy Cornwall Insight have predicted.

It comes after a series of household bills became more expensive in April, and would mean a typical annual bill for a dual-fuel customer paying by direct debit would cost £1,720.

The price cap is based on the cost of each unit of energy, not the total bill – so if you use more, you pay more.