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HomeFinance"Ofgem Announces Energy Price Drop: £117 Savings for UK Homes"

“Ofgem Announces Energy Price Drop: £117 Savings for UK Homes”

The upcoming decrease in energy costs starting April has been announced by Ofgem through its new energy price cap. As of April 1, 2026, the average dual fuel household will see a reduction in their annual energy bill from £1,758 to £1,641.

It is important to note that individual households may experience varying changes in their bills compared to the price cap figure, depending on their specific usage patterns. To estimate the impact on your bills, you can utilize our interactive calculator using your current billing information.

The adjustments in the price cap include reductions in both gas and electricity unit rates. The gas unit rate is set to decrease from 5.93p per kilowatt hour (kWh) to 5.74p per kWh, with the standing charge also dropping from 35.09p to 29.09p per day. For electricity, the unit rate will decrease from 27.69p per kWh to 24.67p per kWh, while the standing charge will increase slightly from 54.75p to 57.21p per day.

Ofgem’s Director General, Markets, Tim Jarvis, highlighted that the price drop is a result of falling wholesale energy prices and strategic investments in the energy network. He emphasized the importance of controlling costs and promoting competition to ensure a sustainable energy system in the long run.

Jarvis also encouraged consumers to explore different tariff options and engage with their suppliers to potentially reduce their energy bills further. It is worth noting that households on fixed deals saved an average of £115 compared to the price cap last year, indicating the potential for additional savings through informed choices.

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