The upcoming decrease in energy costs starting April has been confirmed by Ofgem through the introduction of a new energy price cap. As of April 1, 2026, the average dual fuel household is expected to pay £1,641 annually, a reduction from the previous cap set on January 1, 2026, which was £1,758.
It is worth noting that individual households can calculate their potential bill changes using their current energy bills with the help of an interactive calculator. The price cap establishes the maximum charges for unit rates and standing charges, meaning actual bills may vary from the cap amount.
Gas costs are anticipated to drop from 5.93p per kilowatt hour (kWh) to 5.74p per kWh, while the standing charge is set to decrease from 35.09p per day to 29.09p. Similarly, the unit rate for electricity is projected to decrease from 27.69p per kWh to 24.67p per kWh, with the standing charge increasing from 54.75p to 57.21p per day.
Ofgem’s Director General, Markets, Tim Jarvis, expressed optimism about the price reduction, attributing it to declining wholesale energy prices and strategic investments in the energy network. Jarvis emphasized Ofgem’s commitment to managing controllable costs and fostering long-term energy system stability.
Moreover, Jarvis highlighted the positive trend of increased consumer engagement and competition in the energy market. He encouraged consumers to explore different tariff options and payment methods to potentially lower their bills further, noting that households on fixed deals saved an average of £115 compared to the price cap last year.
Overall, the price cap serves as a safeguard against excessive energy costs, with Jarvis underscoring the importance of consumers proactively engaging with suppliers to explore tailored tariff solutions for optimal bill management.
