Huge changes to energy prices this spring could see your bills fall by £117 – here is exactly how much you will save on electricity and gas

Am I dreaming? Something in the UK is about to get a bit cheaper. Your energy bills could be about to drop thanks to changes to the price cap on electricity and gas suppliers—saving many households around £10 a month.

Every 3 months, the energy regulator Ofgem sets a new price cap on how much suppliers can charge for each unit of energy and the daily standing charge. From April 1 to June 30, 2026, energy prices will go down by £117 or 7% for a typical household.

This now means the annual cost for people who use electricity and gas and pay by Direct Debit would be £1,641 per year. That’s a 11%, or £208 , lower than the average bill in the same period from 2025.

You will soon pay on average 24.67 pence per kilowatt hour (kWh) for electricity, with the daily standing charge at 57.21p per day. While new gas rates will cost on average 5.74p per kWh, and the daily standing charge is 29.09p per day.

Why are energy prices changing?

Ofgem cites the end of two environmental and social schemes from April 2026, saving customers an average of £150. This is the Energy Company Obligation and the Sustainable Farming Incentive (but both will likely be replaced by new, smaller initiatives).

On top of this, the Warm Home Discount costs will change from standing charges to the unit rate from April, while global wholesale energy prices have also gone down by £38 a year.

Who is covered by the energy price cap?

Everyone is covered by the energy price cap, as long as you are on a default tariff and pay for your electricity and gas by standard credit, Direct Debit, prepayment meter or an Economy 7 (E7) meter. The amount depends on how much energy you use, where you live and the type of meter you have.

When will new prices be announced?

The next energy price cap review will cover the period of July 1 to September 30, 2026 , and will be published on or before May 27, 2026.

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