Britain's energy price cap to fall 16% in April -Cornwall Insight

LONDON (Reuters) - Britain's domestic energy price cap is expected to fall 16% in April after a drop in wholesale prices over the past few months despite geopolitical concerns and disruption to energy cargoes in the Red Sea, analysts at Cornwall Insight said on Monday.

Britain hopes cooling energy prices will help curb inflation while a drop in prices would also help households struggling with a cost of living squeeze.

Cornwall Insight forecasts Ofgem's price cap will in April fall to 1,620 pounds ($2,058.53) a year based on average use, down from 1,928 pounds a year now.

"Concerns that events in the Red Sea would lead to a spike in energy bills have so far proved premature," said Craig Lowrey, Principal Consultant at Cornwall Insight.

"Healthy energy stocks and a positive supply outlook are keeping the wholesale market stable," he said.

Wholesale gas and power prices are a major part of the formula Ofgem uses to calculate the price cap.

Cornwall said the cap is expected to fall again in July to 1,497 pounds a year, before rising again slightly in October.

($1 = 0.7870 pounds)

(Reporting by Susanna Twidale, Editing by Louise Heavens)