US EditionHousehold energy bills to drop by £117 from April after Ofgem lowers energy price cap
Ofgem's price cap cut of £117, driven by government policy changes, reduces typical dual-fuel household bills by about 7%, or £10 monthly, starting April 1.
- Ofgem reduced the energy price cap by £117 to £1,641 a year, effective April 1, 2026, saving around £10 a month for a typical dual‑fuel household.
- Following the Budget, the government moved to remove around £150 from average bills by scrapping the Energy Company Obligation and shifting 75% of Renewables Obligation costs into taxation, said the government.
- The change will mainly come through lower unit rates for electricity, and rising network charges have offset some savings, so suppliers will apply the revised cap accordingly.
- Millions of households will see lower bills, but Citizens Advice warned many remain unable to heat their homes, stating 'this has stopped being a temporary hardship and become an ongoing threat to their financial stability'.
- Looking ahead, forecasts remain uncertain for April–June 30, 2026, while the government funds 75% of Renewables Obligation costs and extends the Warm Home Discount to three million households amid volatile wholesale energy markets.
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UK energy bills to fall from April
Energy prices will fall for millions of people in April, with annual household bills being cut by £117 – reducing electricity and gas payments by around £10 per month for the average household. The regulator Ofgem’s price cap will drop after a pledge by Chancellor Rachel Reeves to reduce costs. But the cut is less than what the government promised.
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