The upcoming decrease in energy costs starting April has been confirmed by Ofgem through the announcement of a new energy price cap. As of April 1, 2026, the average dual fuel household will see a reduction in their annual energy bill to £1,641 from the previous £1,758 set on January 1, 2026.
It is important to note that individual households may experience varying changes in their bills compared to the price cap figure, as the cap sets the maximum charges for unit rates and standing charges. To estimate the impact on your bills, you can utilize our interactive calculator using your current billing information.
The adjustments in energy prices include a decrease in the gas unit rate from 5.93p per kilowatt hour (kWh) to 5.74p per kWh, along with a reduction in the standing charge from 35.09p per day to 29.09p per day. For electricity, the unit rate is set to decrease from 27.69p per kWh to 24.67p per kWh, while the standing charge will increase from 54.75p per day to 57.21p per day.
Ofgem’s Director General, Markets, Tim Jarvis, expressed optimism about the price reduction, attributing it to falling wholesale energy prices and ongoing investments in the energy network. Jarvis emphasized the importance of controlling costs, supporting long-term energy system stability, and encouraging consumer engagement and competition in the market.
Jarvis highlighted the role of the price cap in protecting consumers from overpaying for energy but also encouraged consumers to explore different tariffs and payment options to potentially lower their bills further. Notably, consumers on fixed deals paid around £115 less than the price cap on average last year, indicating potential savings through alternative tariff choices and payment methods.