Millions of households across Great Britain will see their energy bills fall from today, as Ofgem’s latest price cap reduction comes into force.
From 1st April 2026, the energy price cap has dropped by around 7%, bringing the typical annual dual-fuel bill for a household paying by Direct Debit down to £1,641 – a saving of £117 compared to the previous quarter.
The price cap, set by regulator Ofgem, limits the maximum amount suppliers can charge per unit of gas and electricity, as well as daily standing charges, for customers on standard variable tariffs. It does not cap total bills, which still depend on how much energy a household uses.
This latest reduction is largely driven by changes to how certain policy costs are funded. The UK Government has shifted some green levies and environmental scheme costs away from energy bills and into general taxation, helping to ease costs for consumers.
In practical terms, households should see savings of around £10 per month on average, although the exact impact will vary depending on usage, region and payment method.
While the drop offers some welcome relief amid ongoing cost-of-living pressures, experts are warning that it may only be temporary. Forecasts suggest the price cap could rise again in July due to global wholesale energy market volatility, potentially reversing some of the gains seen this spring.
For consumers, the key takeaway is that while prices are falling for now, it remains important to stay on top of your tariff. Fixed deals, tracker tariffs, and switching providers could still offer savings compared to the capped rates — particularly if prices begin to climb again later in the year.
As always, the price cap is reviewed every three months, meaning further changes – up or down – could be just around the corner.
