Energy bills to fall by £117 from April as Ofgem lowers price cap
For an average household paying for gas and electricity by direct debit, the overall bill will be £1,641 per year
Households in England, Scotland and Wales will see their average annual energy bill fall by 7 per cent in April, Ofgem has announced.
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Between April and June, the typical annual dual fuel bill will fall to £1,641 - down from the current £1,758 cap.
It is 11 per cent or £208 lower than the level between April and June 2025.
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Financial forecasters at Cornwall Insight had predicted the drop after the government announced interventions to to take £150 in policy costs off energy bills.
The cap is the typical sum most households pay for gas and electricity when paying by direct debit.
It means that if Brits use more energy, they will pay more.
The price cap limits the amount suppliers can charge per unit of energy and is revised every three months.
Prices will vary depending on where you live, how you pay your bill and the type of meter you have.
Ofgem said the change to the energy price cap amounted to a reduction of around £10 a month for the average household using both electricity and gas.
For an average household paying for gas and electricity by direct debit, the overall bill will be £1,641 per year.
Tim Jarvis, director general of markets at Ofgem, said: "Today’s announcement will be welcome news for many households.
"Wholesale energy prices have fallen in recent months, and we’re investing in our network to safeguard the future energy system.
"The main driver of today’s reduction is the change to policy costs announced by the Chancellor in the budget.
"More households are choosing time-of-use tariffs that offer cheaper off-peak rates, and suppliers are offering a wider range of products, including deals with savings at evenings or weekends.
"The price cap protects households from overpaying for energy, but it’s a safety net.
"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."
Responding to the energy price cap drop, Prime Minister Sir Keir Starmer said: "Energy bills are at the front of everybody’s mind, and I know they’ve been too high for too long.
"I promised to bring bills down and I meant it. And today – because of the actions this Government took at the last budget – the price cap on energy bills has come down by £117.
"That means lower energy bills for millions across the country, but I know there is more to do and my Government is pulling every lever to bear down on the cost of living and protect the pound in the pockets of working people."