Energy Price Cap to Decrease by 6.7% in April 2026
The energy price cap, regulated by Ofgem, is set to become an average of 6.7 per cent cheaper effective from 1 April, 2026. This adjustment will impact millions of households across England, Wales, and Scotland, particularly those on standard default tariffs with major suppliers such as British Gas, EDF, EON, Ovo, and Octopus.
Urgent Warning for Customers Without Smart Meters
Consumers who do not have a smart meter installed are being strongly advised to log a meter reading this week. The price cap, which remains in force until 30 June, governs the energy costs for approximately 60 per cent of homes. Individuals on standard tariffs who fail to submit meter readings on or around April 1 risk having a portion of their usage charged under the older, more expensive rates from March.
Ben Gallizzi, an energy expert at Uswitch.com, emphasized the importance of this action: “Customers that don’t send their suppliers regular readings will have their bills calculated by estimated usage and they will likely pay more – so it is always worth knowing how to submit the numbers.” It is crucial to note that the deadline for submitting readings can vary between different energy suppliers.
Impact of Global Events on Energy Prices
According to Money Saving Expert, founded by financial commentator Martin Lewis, the April price cap reduction is unaffected by the ongoing Middle East conflict. This is due to a time-lag mechanism, where the cap is based on wholesale rates from November to mid-February, a period preceding the conflict's onset.
However, the conflict is expected to influence the next price cap period from July to September. Analysts currently predict a potential rise of 16 per cent, but this forecast could change significantly depending on the conflict's duration. The assessment period for this cap extends until May, meaning prices could escalate further if the conflict persists or decrease if it resolves soon.
Benefits for Fixed-Rate Customers
Customers on fixed-rate energy tariffs will also see reductions, with bills becoming roughly 7 to 9 per cent cheaper starting 1 April. This unprecedented decrease results from cuts to certain policy costs on energy bills, which are being shifted to general taxation. Consequently, all bills, including existing fixed-rate agreements, will experience a drop in costs.
On most fixed tariffs, electricity unit rates will decrease by 3.5p per kilowatt-hour, often translating to a reduction of over 13 per cent, while gas rates will fall by 0.33p per kilowatt-hour, typically a decrease of more than 6 per cent. These reduced rates will remain effective until the fixed-term contract concludes.
Gallizzi provided a practical example to illustrate the savings: “Running a tumble dryer the typical three times a week costs £2.22 at April’s price cap rates.” This highlights the tangible benefits of the upcoming price adjustments for everyday energy consumption.
