The upcoming decrease in energy costs starting April has been revealed by Ofgem through its new energy price cap announcement. Commencing from April 1, 2026, the typical dual fuel household will see a reduction in their yearly energy expenditure to £1,641, down from the previous cap set at £1,758 on January 1, 2026.

It is essential to note that while this information pertains to the average household, individuals can calculate the potential changes in their bills by utilizing our interactive calculator based on their current billing details.

The energy price cap dictates the maximum permissible charges for unit rates and standing charges, implying that individual bills may vary either below or above the specified price cap amount.

According to Tim Jarvis, Ofgem’s Director General of Markets, the recent decline in wholesale energy prices and ongoing network investments indicate positive news for many households. The reduction in costs primarily stems from adjustments to policy expenses as outlined in the recent budget announcement by the Chancellor.

Ofgem’s focus remains on minimizing controllable expenses and facilitating investments crucial for transitioning towards a more resilient energy system in the long run. Additionally, there has been a notable rise in consumer engagement and competition, with a nearly 20% increase in switching rates annually. More households are opting for time-of-use tariffs offering discounted off-peak rates, while suppliers are introducing diverse product offerings, including savings-oriented deals during evenings and weekends.

While the price cap acts as a safeguard against excessive energy charges, it is important to recognize that fixed deal consumers saved an average of around £115 less than the cap last year. Ofgem encourages consumers to explore different tariff options and payment methods by engaging with their suppliers to potentially further reduce their energy bills.