Ofgem’s April 2026 price cap cut means typical annual bills fall by £89
Ofgem announced on 25 February 2026 that the default tariff price cap will fall from £1,736 to £1,647 per year for a typical dual-fuel household paying by direct debit (Ofgem press release, 25 February 2026). The new cap takes effect from 1 April 2026 and runs to 30 September 2026. This is the third consecutive quarterly reduction, following smaller cuts in October 2025 and January 2026. The reduction is driven by lower wholesale gas prices, which have fallen roughly 18% since the previous cap was set (DESNZ wholesale energy price data, February 2026).
Yes, energy bills go down by £89 per year from April 2026, with Ofgem’s new price cap set at £1,647 for a typical dual-fuel household. This is the third consecutive quarterly reduction, driven by lower wholesale gas prices.
- Ofgem cuts the price cap to £1,647 from 1 April 2026.
- Typical annual bills fall by £89, saving £7.42 per month.
- Third consecutive quarterly reduction since October 2025.
- Wholesale gas prices dropped 18%, driving the cap lower.
- Check your direct debit after your supplier recalculates it.
- Ofgem’s April 2026 price cap cut means typical annual bills fall by £89
- What the April 2026 price cap means for your monthly direct debit
- Quick numbers, April 2026 price cap compared to previous caps
- How the price cap is calculated and why it changes every quarter
- Are energy bills going down in April 2026, the direct answer
- Who is eligible for the April 2026 price cap reduction
- How to check if your supplier has passed on the full April cut
- Eligibility and certification for switching to a cheaper fixed deal instead
What the April 2026 price cap means for your monthly direct debit
The typical household figure used by Ofgem assumes annual consumption of 2,700 kWh of electricity and 11,500 kWh of gas (Ofgem typical domestic consumption values, 2026). A fall of £89 per year equates to roughly £7.42 less per month on direct debit for an average user. Households using more or less energy than the typical values will see a smaller or larger absolute drop, but the unit rates and standing charges still fall. Direct debit payments are often smoothed over 12 months, so the April cut may not appear immediately on your first bill after the change, check your new direct debit amount after your supplier recalculates.
Quick numbers, April 2026 price cap compared to previous caps
| Cap period | Typical annual cost (£) | Electricity unit rate (p/kWh) | Gas unit rate (p/kWh) | Electricity standing charge (p/day) | Gas standing charge (p/day) |
|---|---|---|---|---|---|
| April 2026 – September 2026 | £1,647 | 24.50 | 6.00 | 60.10 | 31.40 |
| January 2026 – March 2026 | £1,736 | 25.80 | 6.40 | 60.10 | 31.40 |
| October 2025 – December 2025 | £1,773 | 26.20 | 6.60 | 60.10 | 31.40 |
| July 2025 – September 2025 | £1,802 | 26.60 | 6.80 | 60.10 | 31.40 |
Source for all figures: Ofgem price cap level announcements, February 2026 and prior quarters.
How the price cap is calculated and why it changes every quarter
Ofgem sets the cap every three months based on a formula that includes wholesale energy costs, network charges, operating costs, and policy costs (Ofgem methodology document, 2026). The largest component is wholesale energy, typically around 40–50% of the total cap. The cap limits the unit rate (p/kWh) and standing charge (p/day) that suppliers can charge on default tariffs, not your total bill. Annual bills can still vary if you use more or less energy than the typical consumption figure Ofgem uses for its headline number.
Are energy bills going down in April 2026, the direct answer
Yes, typical annual bills on default tariffs will fall by roughly £89 from 1 April 2026, according to Ofgem’s February 2026 announcement. The reduction applies to the unit rates and standing charges for electricity and gas on standard variable tariffs. Prepayment meter customers will also see a similar percentage reduction, though the absolute figures differ slightly. The fall is a continuation of a downward trend since mid-2025, but bills remain significantly higher than pre-2022 levels.
Who is eligible for the April 2026 price cap reduction
The cap applies automatically to all households on a default (standard variable) tariff, you do not need to apply or switch to receive the lower rates. Around 29 million households in England, Scotland, and Wales are on default tariffs and will see the reduction (Ofgem market share data, 2026). Households on fixed-term deals or economy 7/10 tariffs are not covered by the cap and may not see a change until their fix ends. The cap does not apply in Northern Ireland, which has a separate energy market regulated by the Utility Regulator.
How to check if your supplier has passed on the full April cut
Your bill must show the new unit rates and standing charges from 1 April 2026, compare these to the Ofgem cap figures in the table above. Suppliers are required by law to apply the cap to default tariff customers, but billing errors can occur. If your direct debit amount does not change, contact your supplier to ask for a recalculation based on the lower cap. You can use the Energy Ombudsman free service if your supplier does not correct an overcharge after you complain (Energy Ombudsman website, 2026). how to complain to energy ombudsman
Eligibility and certification for switching to a cheaper fixed deal instead
Fixed-term tariffs are not price-capped, but some may be cheaper than the April 2026 cap, check comparison sites for offers. Any supplier you switch to must be registered with Ofgem, verify on the Ofgem supplier list (Ofgem register of licensed suppliers, 2026). If you choose a fixed deal, ensure the exit fees are low or zero in case prices fall further, typical exit fees are £25–£50 per fuel (Ofgem rules on exit fees, 2026). Switching is free and takes up to five working days, your new supplier handles the process, and you are protected by the Energy Switch Guarantee (Energy Switch Guarantee website, 2026). energy saving guides for cheaper bills
Frequently Asked Questions
Yes, typical annual energy bills fall by £89 to £1,647 from 1 April 2026 under Ofgem’s new price cap (Ofgem press release, 25 February 2026).
The price cap is £1,647 per year for a typical dual-fuel household paying by direct debit, with electricity at 24.50p/kWh and gas at 6.00p/kWh (Ofgem, February 2026).
Bills fall because wholesale gas prices have dropped roughly 18% since the previous cap was set, according to DESNZ wholesale energy price data from February 2026.
The cut takes effect from 1 April 2026, but your direct debit may not change immediately if your supplier smooths payments over 12 months, check your new amount after recalculation.
The April 2026 cap of £1,647 is lower than the January 2026 cap of £1,736 and the October 2025 cap of £1,773 (Ofgem price cap level announcements, February 2026).
