The upcoming month of April will see a decrease in energy costs following the announcement of a new energy price cap by Ofgem. Starting from April 1, 2026, the average dual fuel household will pay £1,641 annually for their energy, down from the previous cap set on January 1, 2026, which was £1,758.
While this figure represents the typical household, individuals can determine their specific bill changes by utilizing an interactive calculator based on their current bills. The price cap dictates the maximum allowable charges for unit rates and standing charges, meaning individual bills can vary either above or below the set price cap.
Gas unit rates are set to reduce from 5.93p per kilowatt hour (kWh) to 5.74p per kWh, with the standing charge decreasing from 35.09p per day to 29.09p. In contrast, electricity unit rates will 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.
According to Tim Jarvis, Director General, Markets at Ofgem, the decline in energy prices is due to recent drops in wholesale energy costs and ongoing network investments to ensure a stable energy system. Jarvis highlighted that policy cost adjustments announced in the budget have been a significant factor in the price reduction.
Jarvis emphasized Ofgem’s commitment to controlling costs within its purview and driving investments essential for a sustainable energy transition. Additionally, he noted a rise in consumer engagement, evidenced by a nearly 20% increase in switching rates, with more households opting for cost-effective time-of-use tariffs and suppliers offering diverse product ranges to cater to consumer needs.
While the price cap safeguards consumers from overpaying for energy, Jarvis stressed that fixed deal consumers saved an average of £115 less than the price cap last year. He urged consumers to explore different tariff options and payment methods with their suppliers to potentially lower their energy bills further.