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- Why has the energy price cap come down?
- Who's covered by the energy price cap?
- Energy price cap: quick facts
- Electricity and gas unit prices from 1 April to 30 June 2026
- Energy Price Cap tracker
- How is the energy price cap calculated?
- What are the most cost-effective ways to reduce energy bills?
- Think about renewable energy options
- What can you do if you’re struggling?
- Will the energy price cap come down again?
- The energy price cap will go down by £117 or 7% for a typical household who use electricity and gas and pay by direct debit
- Compared to the level between April and June 2025, it is 11% or £208 lower
- The annual cost for people who use electricity and gas and pay by direct debit would be £1,641 per year
Energy bills for a typical household will drop by £117 or 7% for the average dual fuel household from 1 April to 30 June 2026, energy regulator Ofgem has announced.
The drop will see an average household paying by direct debit for gas and electricity pay £1,641 per year. Compared to the level between April and June 2025, it is 11% or £208 lower.
The current energy price cap is £1,758, with electricity costing 27.69 pence per kilowatt-hour (kWh) and gas costing 5.93 pence per kWh. The energy price cap will change on the 1 April.
Ofgem’s energy price cap is set every three months and puts a limit on what suppliers can charge consumers for each unit of energy. About 65% of households in England, Wales, and Scotland (roughly 20 million) are affected by it.
Why has the energy price cap come down?
According to Cornwall Insight, April’s price drop has been driven by several factors, most notably the decision to shift 75% of Renewables Obligation costs from customer bills into general taxation, which Chancellor Rachel Reeves announced in her November 2025 Budget.
A second reason was the decision not to extend the Energy Company Obligation (ECO) beyond March 2026, as well as a comparatively modest easing in wholesale prices during the period over which the cap was set.
The average daily electricity and gas standing charges will also change. The average standing charge from April to June 2026 will be 57.21p per day, while the daily standing charge for gas will be 29.09p per day.
However, the actual rates you are charged will depend on where you live, how you pay your bill and the type of meter you have.
For example, North West households will pay 47.63p per day standing charge and 24.70p per unit.
Northern Scotland will pay 57.57p per day standing charge and 25.02p per unit, and London households will pay 44.83p per day standing charge and 24.90p per unit.
The energy price cap announcement also ensures prices for people on a default tariff (standard variable) are fair and reflect the cost of energy.
Who’s covered by the energy price cap?
The energy price cap covers the vast majority of households in the UK, about 20-24 million, or 65% of homes.
The energy price cap applies to anyone who is:
- On a default, or standard variable, energy tariff
It also applies to you if you pay by
- Standard credit (payment made when you get your electricity and gas bill)
- Direct debit
- Prepayment meter
- Economy 7 meter
Energy price cap: quick facts
- The energy price cap is the maximum amount that energy companies can charge
- The current energy price cap is £1,758, with electricity costing 27.69 pence per kilowatt-hour (kWh) and gas costing 5.93 pence per kWh.
- The energy price cap is set by energy regulator Ofgem every three months. It is affected by international wholesale prices, government policy, and the strength of the National Grid, among other things
- The energy price cap is calculated based on the cost of supplying electricity and gas, including wholesale pricing and operating costs.
- The next energy price cap will come into place on 1 April 2026. It will be set at £1,641, with electricity costing 24.67p per kWh and gas costing 5.74p per kWh.
- The energy price cap started in 2019, its record high is £4,279 in Q1 2023.
Electricity and gas unit prices from 1 April to 30 June 2026
The cost of electricity and gas per kWh changes every three months.
From 1 April to 30 June, this will drop to 24.67p per kWh for electricity, whereas gas will be 5.74p per kWh. All pricing is inclusive of 5% VAT.
Overall, a typical household will be saving around £10 a month on their energy bills.
For a full list of pricing for your region, check out the Ofgem website or our guide on What’s the price of electricity per kWh right now?
Energy Price Cap tracker
Take a look at how the energy price cap has changed since it was first introduced in January 2019 in our chart below.
Between October 2022 and March 2023, during a period of particularly high gas prices, the government provided households with £400 through the Energy Bills Support Scheme (EBSS). This was paid via monthly installments and was reflected on household energy bills.
While energy prices have come down significantly since that period, they have still not returned to pre-Covid-19 levels.
Dhara Vyas, chief executive, Energy UK, backed this and that wholesale costs now make up around 40% of the bill.
“Today’s reduction in the energy price cap is a welcome first step by the government toward providing meaningful support for households,” he said.
“However, building more British power will increase our energy security and stabilise costs in the long-term by reducing our reliance on volatile fossil fuels that often set the price of our bills.”
Vyas also warns that while everyone should see savings from 1 April, the effect of moving some policy costs off the gas and electricity unit price will be different.
“While everyone should see savings on their bills from 1 April, the effect of moving some policy costs off the gas and electricity unit price will be different.
“It depends on each household’s energy use, the type of building you live in, how many people live in the property and even how the bill is paid,” he said.
How is the energy price cap calculated?
The energy price cap is calculated based on a number of things.
- Wholesale energy costs
- Network costs
- Operating costs
- Policy costs
- VAT
These costs are then split within the energy price cap between the unit rate and the standing charge.
Why has the energy price cap come down?
The big change has been the government’s decision to move two environmental and social schemes (also known as ‘green levies’) to general taxation from April 2026. When the government announced this back in the November Budget, Rachel Reeves said it would save billpayers £150. In truth, it has only saved £117.
On top of the policy shift, from April 2026, costs related to the Warm Homes Discount will change from standing charges to the unit rate. Over the past three months, wholesale energy prices have also gone down by £38 a year.
Network costs have increased by £66 a year because of the current price control framework (RIIO-3). The framework invests in upgrading energy infrastructure, such as power and gas grids to help keep bills more stable in the future.
What are the most cost-effective ways to reduce energy bills?
If you’ve been pushing energy-saving solutions to the bottom of your to-do list, now is the time to change that.
Some changes require significant upfront costs, a huge barrier, especially as households are grappling with the cost of living crisis. However, others are low cost to install.
The first thing we recommend is check your house for any draughts. If you find the source, you can then research suitable solutions, as draught-proofing windows and doors can save you roughly £35 a year.
For your doors, you can get a draught door excluder – a long, stuffed, cushion-type device that’s heavy enough to block out draughts. It lays across the door and will prevent cold outside air from coming into your home. You will be able to buy these in most discounted retail stores or online for a small cost. Prices range from £4 to £30.
Other changes include:
- Install LEDs: Swap your bulbs for LEDs, each bulb can save up to £5 a year on electricity. You’re also less likely to need to replace them as often as standard bulbs
- Look after your fridge: Avoid putting warm food in it straight away as it works harder to cool down. Regularly clean it too.
- Utulise food waste apps: Apps, such as Too Good to Go, allow you to buy food at a discounted rate. They often go past their sell by date meaning stores can no longer stock it, but it’s still good to consume. This can help save money on lunches or other meals.
- Replace worn-out windows: Almost 45% of energy escapes from windows, so if you’ve yet to install double-glazing, it might be worth looking into.
- Insulate your home: There are different types of insulation to consider, such as cavity wall and pipe insulation.
There are lots of other ways to reduce your energy bills, but you can dive into fourteen ways by using our guide.
Also check out our guide on improving your EPC rating, as this can also help reduce your energy bills overall.
Think about renewable energy options
According to The Eco Experts National Home Energy Survey 2024, more than half of homeowners cite reducing their energy bills as a key motivation for adopting low-carbon technology and renewable energy.
The most-common forms of low-carbon technology include:
The price of solar panels is a barrier for some, and one of the most popular questions we get asked is ‘how much are solar panels?‘ However, our page on solar panel costs should give you everything you need to know.
Another great way to save energy and money is to install double glazing. The best double glazing companies are affordable and can help get rid of your old windows through the Window Scrappage Scheme.
Some will require high upfront costs, but there are government incentives to help:
- The Warm Homes Plan
- The Boiler Upgrade Scheme
- ECO4 Scheme (this will expire on March 31 2026)
- Warmer homes Scotland
- Nest – for households in Wales
- Warm Homes: Local Grant
There are a whole host of grants for solar panels, and some installers also offer finance options to help you spread the upfront costs.
What can you do if you’re struggling?
With the increasingly higher energy bills, 9.4 million households have been worried about paying their energy bills this winter, the equivalent to 33% of all households, according to new research from Citizens Advice.
Responding to the latest Ofgem price cap announcement, Dame Clare Moriarty, chief executive, Citizens Advice, said that while a fall in energy prices is welcome, for many people bills remain stubbornly high.
“For millions of households, this has stopped being a temporary hardship and became an ongoing threat to their financial stability,” Moriarty said.
She also said that while the government has taken steps in the right direction to bring down bills through the Warm Home Discount, these planned recovery costs are taken from those who need it most, low-income households.
“The divide between those who can and cannot keep their homes warm and safe demands urgent action. Too many people, particularly those with disabilities, families with children, and renters, remain trapped in cold, damp homes they cannot afford to heat,” she said.
As a result, Moriarty and Citizens Advice are calling on the government to reform the Warm Home Discount, so that support is tiered according to households’ actual energy needs, ensuring the highest-need households receive the most help.
If you’re struggling to pay your energy bills, the first port of call should be to contact your energy supplier.
You can ask about a payment plan that works for you, ask about any hardship funds or ask if you can pay smaller amounts more often.
Also check to see if you qualify for any grants or schemes from your local authority. Some charities have hardship funds, too. You might also qualify for benefits.
Will the energy price cap come down again?
It’s unlikely the energy price cap will come down again in July 2026 thanks to what Cornwall Insight call “turbulent market conditions”, mainly because of US policies in the Middle East disrupting the gas supplies and wholesale prices.
Cornwall Insight has predicted an increase of £4 for the July-September period to £1,645 a year.
Dr Craig Lowrey, principal consultant, Cornwall Insight, said the likely increase in the energy price cap makes it more important that the UK move towards a “sustainable, locally-sourced energy”.
As a result, Lowrey said the government will face the difficult challenge of balancing the upfront policy costs required to deliver the transition against the long-term benefits of such a move.
Currently, the predictions from Cornwall Insight predict the average dual fuel household will pay around £860.85 for electricity and £784.36, and a unit cost of 23.77p per kWh for electricity and 5.66p per kWh for gas.
“Today’s reduction in the cap will bring relief to households after a prolonged period of pressure on their energy bills,” Lowrey said.
“However, our early view for July suggests that this is where the big falls stop,” he said.
“Policy and network costs are holding relatively steady over the next quarter, but recent volatility in the wholesale market risks pushing prices upwards.”
