Starting April, energy costs are poised to decrease following the announcement of a new energy price cap by Ofgem.
As of April 1, 2026, the average dual fuel household is expected to pay £1,641 annually for energy, a drop from the previous cap of £1,758 set on January 1, 2026.
It is important to note that the price cap establishes the maximum allowable charges for unit rates and standing charges, meaning individual bills may vary from the cap amount.
Consumers can utilize our interactive calculator to estimate the impact of these changes on their specific energy bills.
The gas unit rate is set to decrease from 5.93p per kilowatt hour (kWh) to 5.74p per kWh, with the standing charge dropping from 35.09p to 29.09p per day.
Similarly, the electricity unit rate will decrease from 27.69p per kWh to 24.67p per kWh, while the standing charge will slightly increase from 54.75p to 57.21p per day.
In response to the price cap adjustments, Tim Jarvis, Director General, Markets at Ofgem, expressed optimism, citing reductions in wholesale energy prices and ongoing investments in the energy network. Jarvis emphasized the focus on managing controllable costs and facilitating investments for a more resilient energy system in the long run.
Jarvis noted an increase in consumer engagement and competition, with a nearly 20% rise in switching rates. He highlighted the popularity of time-of-use tariffs offering discounted rates during off-peak hours and the availability of diverse products from suppliers, including savings-oriented deals for evenings and weekends.
While the price cap safeguards consumers from excessive energy charges, Jarvis advised customers to explore alternative tariffs and payment methods with their suppliers to potentially reduce their bills further, as fixed deal consumers saved an average of £115 below the price cap last year.
