Millions of UK households will pay less for electricity and gas from 1 April to 30 June 2026, after Ofgem announced a 7% reduction in the energy price cap.
The average annual household bill for someone on a standard default tariff and paying by direct debit will fall from £1,758 to £1,641, saving a typical dual-fuel household around £117 over three months, or roughly £10 a month.
High electricity users will see the biggest savings, while households with lower energy consumption will also benefit, but people are still encouraged to seek energy-saving tips to help them save further.
Article continues belowWhat is the energy price cap?
The energy price cap sets the maximum price suppliers can charge per unit of electricity and gas, as well as a daily standing charge.
It applies to households on standard or default tariffs but does not cap the total bill, which depends on how much energy is used. Ofgem reviews the cap quarterly to account for wholesale energy prices, policy costs, and network charges.
The scheme replaced the Energy Price Guarantee, which capped bills at £2,500, but then reverted back to the energy price cap.
How much has the energy price cap decreased?
The average annual household bill will fall by £117, equivalent to a 7% decrease compared with the previous quarter.
Ofgem says the reduction is primarily due to changes in government policy costs announced in the Budget and recent falls in wholesale energy prices.
Tim Jarvis, Director General for Markets at Ofgem, said: “Today’s announcement reduces the energy price cap to £1,641. The main driver of this reduction is the change to policy costs announced by the Chancellor in the Budget, alongside lower wholesale energy prices.”
Below are the latest energy price cap figures for 1 April to 30 June 2026. These are based on a typical household using electricity and gas and paying by Direct Debit in England, Scotland and Wales.
Component | New rate | Previous rate | Change |
|---|---|---|---|
Overall annual bill (dual fuel, Direct Debit) | £1,641 | £1,758 | -7% (£117) |
Electricity unit rate | 24.67p/kWh | 27.69p/kWh | -10.9% |
Electricity standing charge | 57.21p/day | 54.75p/day | +4.5% |
Gas unit rate | 5.74p/kWh | 5.93p/kWh | -3.2% |
Gas standing charge | 29.09p/day | 35.08p/day | -17.1% |
These figures are based on a typical household in England, Scotland, and Wales using both electricity and gas and paying by Direct Debit.
Who is affected by the energy price cap?
The price cap applies to around 33 million domestic accounts on standard or default tariffs, including prepayment meters. Households on fixed-rate tariffs, green tariffs, or business energy contracts are not directly affected.
Those who aren't affected are:
- Those on a fixed-rate energy deal
- Customers on green energy tariffs (exempt from the cap)
- Businesses and commercial users
Does the energy price cap limit your bills?
No, the energy price cap does not set a limit on your total bill – it only caps the unit rate suppliers can charge.
Your total energy cost will still depend on how much energy you use. The more electricity and gas your household consumes, the higher your final bill.
This is why energy efficiency measures, such as improving insulation, upgrading appliances, and reducing unnecessary energy usage, remain crucial in managing costs.
How to reduce your energy bills
Although the energy price cap is falling, you should still seek ways to help reduce your energy prices:
- Switch to a fixed-rate tariff: If energy prices are expected to rise further, securing a fixed-rate deal could save money.
- Upgrade your home’s efficiency: Consider better insulation, double glazing, or heat pumps to reduce energy use.
- Monitor your energy usage: Smart meters can help track and reduce unnecessary consumption.
- Apply for Government schemes: Check eligibility for schemes like the Warm Home Discount or Winter Fuel Payment.
When is the next energy price cap review?
The energy price cap is reviewed quarterly – in January, April, July, and October.
The next quarterly review of the energy price cap is due at the end of May 2026, covering 1 July to 30 September 2026.
While the April price cap cut provides some relief, households are still exposed to fluctuations in energy costs. Total bills will continue to depend on how much electricity and gas a household uses, and standing charges may vary slightly by region.
Consumers are encouraged to monitor their energy usage, compare tariffs, and consider options like fixed-rate deals or government support schemes to manage costs effectively.
The next review of the cap, scheduled for July 2026, will determine whether bills rise or fall again, making it important for households to plan ahead and stay informed.
