Energy bills to fall as Ofgem cuts price cap from April - 25th February 2026

Household energy bills across Great Britain are set to fall from April after regulator Ofgem confirmed a reduction in its quarterly price cap.

From 1 April and 30 June 2026, the cap will be set at £1,641 per year for a typical dual-fuel household paying by Direct Debit, down from £1,758 in the previous quarter - a fall of around 7%, or £117 annually. 

The regulator said the change reflects a drop in wholesale energy costs and lower policy charges, although this has been partly offset by rising network costs linked to ongoing investment in UK energy infrastructure. 

Under the new cap:

• Average electricity unit rates will fall to around 24.67p per kWh

• Average gas unit rates will fall to approximately 5.74p per kWh

• Standing charges will vary by region and payment method 

The price cap applies to customers on standard variable and default tariffs and covers roughly two-thirds of UK households. Despite the reduction, energy costs remain significantly above pre-crisis levels seen before winter 2021-22, and consumer groups warn that affordability challenges are likely to persist for many households.