The upcoming reduction in energy costs starting from April has been confirmed by Ofgem following the announcement of a new energy price cap. As of April 1, 2026, the average dual fuel household is expected to pay £1,641 annually for energy, a decrease from the previous cap set at £1,758 on January 1, 2026.
It’s important to note that individual households may experience varying changes in their bills based on the current rates. To estimate the impact on your bills, you can utilize our interactive calculator tool.
The energy price cap establishes the maximum allowable charges for unit rates and standing charges, meaning your actual bill may be higher or lower than the capped amount.
Gas costs are set to lower, with the average unit rate decreasing from 5.93p per kilowatt hour (kWh) to 5.74p per kWh, and the standing charge dropping from 35.09p to 29.09p per day. Meanwhile, electricity rates are also decreasing, from 27.69p per kWh to 24.67p per kWh, although the standing charge is rising from 54.75p to 57.21p per day.
Ofgem’s Director General, Markets, Tim Jarvis, expressed that the reduction in prices is a positive development for many households. The decrease is attributed to the decline in wholesale energy prices, investments in the energy network, and adjustments to policy costs as announced in the budget. Ofgem continues to focus on reducing controllable costs and facilitating investments for a more resilient energy system in the long run.
Moreover, there has been a notable increase in consumer engagement and competition in the energy market, with a rise in switching by nearly 20% year-on-year. More households are opting for time-of-use tariffs offering discounted rates during off-peak hours, and suppliers are introducing a wider array of products, including deals with savings on evenings and weekends.
While the price cap ensures protection for consumers against overpaying, it functions as a safety net. Consumers on fixed deals saved an average of £115 compared to the cap last year. Ofgem encourages consumers to explore different tariff options and payment methods with their suppliers to potentially further reduce their energy bills.