The UK's energy regulatory body, Ofgem, has announced that the energy price cap will fall by 6.7% from 1st April 2026. This means that the typical annual household dual-fuel energy bill will fall from £1,758 to £1,641, a saving of £117.
The latest energy price cap figure covers the period from 1st April 2026 to 30th June 2026 and will mean the average dual-fuel household will pay roughly £10 per month less for their energy.
Tim Jarvis, Director General of Markets at Ofgem, said "Today’s announcement will be welcome news for many households".
He added "Last year, consumers on fixed deals paid around £115 less than the cap on average, so we’d encourage people to speak to their supplier about the options available and consider whether a different tariff or payment method could help bring their bills down further".
Why has the energy price cap been cut?
A significant contributor to the fall in the energy price cap is the government's decision to cut two green levies, which will come into effect from April 2026. The Energy Company Obligation (ECO) scheme will end, while 75% of the 'renewables obligation', a levy that funds renewable projects, will be taken off electricity bills. The renewables obligation will instead be paid through general taxation, creating a saving of around £88 for average bill payers. Not renewing the Energy Company Obligation (ECO) scheme was expected to save £59 on average, plus there is an approximate saving of £7 in VAT from both cuts.
The treasury announced in the 2025 Autumn Budget that the savings would amount to around £154, however, the actual drop is now only £117. This has been put down to rising costs associated with operating and maintaining the energy network, and volatility in the wholesale gas market. We explain this in more detail in our article 'Energy bills predicted to fall from April'.
The government's decision to cut a number of levies in addition to the scrapping of the Energy Company Obligation scheme means that it isn't just those on a variable tariff that will see their bills come down in April. Energy providers have agreed to pass the savings onto customers who had fixed their energy prices meaning most fixed-rate tariffs will also see a drop of between 7%-9% from 1st April.
Energy price cap figures 2024-2026
Below, we provide a brief history of the energy price cap figures going back to January 2024.
| Date Energy Price Cap is effective from | Energy Price Cap |
| 1st January 2024 | £1,928 |
| 1st April 2024 | £1,690 |
| 1st July 2024 | £1,568 |
| 1st October 2024 | £1,717 |
| 1st January 2025 | £1,738 |
| 1st April 2025 | £1,849 |
| 1st July 2025 | £1,720 |
| 1st October 2025 | £1,755 |
| 1st January 2026 | £1,758 |
| 1st April 2026 | £1,641 |
Energy price cap history
The graph below shows the fluctuations in the energy price cap since January 2024 and also provides the latest prediction for the energy price cap for June 2026.
How much will I pay for energy under the new price cap?
The following table shows how much you can expect to pay for each unit of gas and electricity from 1st April 2026. The figures will vary depending on where you live in the UK. Remember, the amount you pay under the new price cap will be based on your energy usage and the charges stated below, assuming you pay by direct debit.
| Current energy price per unit
(1st January - 31st March 2026) |
New energy price per unit
(1st April - 30th June 2026) |
|
| Electricity | Daily Standing charge: 54.75p
Unit price per kWh: 27.69p |
Daily Standing charge: 57.21p
Unit price per kWh: 24.67p |
| Gas | Daily Standing charge: 35.09p
Unit price per kWh: 5.93p |
Daily Standing charge: 29.09p
Unit price per kWh: 5.74p |
(Source: Ofgem)
Future energy price cap predictions
Major energy suppliers now provide energy price cap forecasts that stretch as far as early 2027. Current long-range forecasts from major suppliers suggest relative stability or minor fluctuations after the April 2026 drop, but with a low level of confidence.
| Source | Predicted Annual Cost from July 2026 (Confidence Level) | Predicted Annual Cost from October 2026 (Confidence Level) | Predicted Annual Cost from January 2027 (Confidence Level) |
Date of Forecast |
| British Gas | £1,640 (Very Low) | £1,635 (Very Low) | £1,645 (Very Low) | 25th Feb 2026 |
| E.ON Next | £1,600 (Low) | £1,611 (Lowest) | N/A | 25th Feb 2026 |
| EDF | £1,635 (Very Low) | £1,639 (Very Low) | £1,659 (Very Low) | 25th Feb 2026 |
Is now the time to fix your energy tariff?
The recent cut to the energy price cap complicates the decision of whether now is the right time to fix your energy tariff. When prices were consistently rising, fixing offered protection against further increases, but with lower variable rates from April now confirmed, the decision is less straightforward. Ultimately, the best course of action depends on your individual circumstances, usage patterns, and tolerance for risk. We discuss this in more detail in our article 'Should I fix my energy prices?'.
What if you can't afford to pay your energy bill?
Even with lower energy bills from April, typical bills remain around £400 higher than they were in October 2021. If you find you are struggling to pay your energy bills, there are a number of things you can do:
- Contact your energy supplier - Notifying your energy supplier that you are struggling to pay your energy bills means that they are obliged to help you find an affordable way to repay them.
- Check for grants and schemes - Contact your energy supplier and ask if you are eligible for any of their grants or schemes on offer.
- Pay your bills via your benefits - If you receive certain benefits, such as Universal Credit or Income Support, you may be able to come to an agreement with your supplier for your debts to be repaid directly from your benefits.
Check out the full article 'What to do if you're struggling to pay your energy bills' for more information.
Help if you're struggling to pay your energy bill
You may be able to clear your debt with your energy supplier via the Fuel Direct Scheme if you receive benefits. Alternatively, you may be able to get help with grants and schemes offered by your energy supplier or with the British Gas Energy Trust, which offers support for customers of all energy companies. For more information on the schemes available, visit the Citizen's Advice website.
Finally, there are a number of charities and organisations that can provide free financial advice. We've provided links to a selection of the best websites below:
- MoneyHelper (previously the Money Advice Service)
- The money charity
- StepChange
- National Debtline
- Turn2us
- Citizens Advice
- Payplan
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