Ofgem Lowers Energy Price Cap

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Every three months, Ofgem reviews the energy price cap. The cap limits the maximum amount suppliers can charge per unit of gas and electricity, as well as the daily standing charge.

From 1 April, the price cap will fall by 7%, reducing the average annual bill by around £117 (about £10 per month) for a typical household paying by Direct Debit.

What does the energy price cap affect?

The cap applies to customers on:

Standard variable tariffs
Direct Debit tariffs
Prepayment meter
Economy 7 (E7) meters

If you’re on a fixed tariff, the cap doesn’t apply until your fixed deal ends.

Your actual bill will still depend on:

How much energy you use
Where you live
Your payment method

The price cap limits unit rates and standing charges – it doesn’t cap your total bill.

New rates (from 1 April)

These are average rates for households in England, Scotland and Wales on a standard variable tariff.

Electricity

Unit rate: 24.67p per kilowatt hour (kWh)
Daily standing charge: 57.21p per day

Gas

Unit rate: 5.74p per kWh
Daily standing charge: 29.09p per day

(Actual rates vary slightly by region).

What’s changed?

The cap is decreasing by 7%.
The average annual Direct Debit bill will be around £1,641.
That’s about £117 less per year.
Compared to April 2025, bills are around 11% lower (around £208 less annually).

While this is positive news, prices remain higher than historic pre-2022 levels.

How can I make my energy more affordable?

If you’re worried about keeping your bills manageable, there are practical steps you can take:

Check you’re on the best tariff

Comparison websites such as MoneySuperMarket or GoCompare can help you see whether a fixed deal may be cheaper in your area.

Look for support and grants

You may be eligible for:

Cold Weather Payments
Warm Home Discounts
Energy supplier hardship funds

If you’re already behind on bills, suppliers may offer repayment plans based on affordability.

Review your budget

If energy costs are putting pressure on your finances, reviewing your wider budget can help identify where pressure is building and what support is available. Our BudgetSmart tool can help guide you through this.