From 1 April 2026, the energy price cap falls by 6.6% - saving the average household around £117 a year, or roughly £10 a month. That's genuinely good news. But if you're assuming your bill will simply get cheaper and leave it at that, you could still be leaving hundreds of pounds on the table.
Here's everything you need to know about what's changing, what it means for your bill, and whether April is the right moment to switch.
Ofgem sets the energy price cap every three months. It limits the maximum unit rate and standing charge that suppliers can apply to standard variable tariffs (SVTs) - the default tariff most households are on if they haven't actively chosen a deal.
From 1 April to 30 June 2026, the new cap rates for households paying by Direct Debit are:
| From 1 April 2026 | Until 31 March 2026 | Change | |
|---|---|---|---|
| Electricity unit rate | 24.67p/kWh | 27.69p/kWh | ↓ 11% |
| Electricity standing charge | 57.21p/day | 54.75p/day | ↑ slightly |
| Gas unit rate | 5.74p/kWh | 5.90p/kWh | ↓ 3% |
| Gas standing charge | ~29p/day | ~35p/day | ↓ |
| Typical annual bill (dual fuel, DD) | £1,641 | £1,758 | ↓ £117 |
Rates are averages across England, Scotland and Wales. Your actual rates vary by region - more on that below.
One important nuance: electricity standing charges are actually going up slightly in April, even as unit rates fall. That means heavy electricity users will save more than the headline figure suggests, while very low users might save less.
Two main drivers:
1. Lower wholesale energy prices. Global gas prices have fallen in recent months, which feeds directly into what suppliers pay for energy - and ultimately what you pay.
2. A government policy decision. In the Autumn 2025 Budget, the government committed to moving the cost of several energy policies - including the Energy Company Obligation (ECO) and portions of the Renewables Obligation - away from household bills and into general taxation. This removes around £150/year from the average bill. The April cap is the first time this change takes effect.
The result is that even though network costs have increased (to fund infrastructure investment), the overall bill falls meaningfully for most households.
The cap applies to you if:
The cap does not apply if you're on a fixed-rate deal. Your fixed rates are locked until your contract ends, regardless of what the cap does.
Energy prices vary across the UK because of different network costs in each distribution region. The average figures above mask meaningful regional variation - households in Southern England typically pay more than those in the East Midlands, for example.
The table below shows approximate electricity unit rates by region from 1 April 2026 (Direct Debit, single-rate meter):
| Region | Approx. electricity unit rate (April 2026) |
|---|---|
| East Midlands | ~23p/kWh |
| East of England | ~25p/kWh |
| London | ~25p/kWh |
| Merseyside & North Wales | ~24p/kWh |
| Midlands (West) | ~24p/kWh |
| North East | ~24p/kWh |
| North West | ~25p/kWh |
| North Scotland | ~27p/kWh |
| South East | ~25p/kWh |
| South Scotland | ~24p/kWh |
| South West | ~25p/kWh |
| Southern | ~26p/kWh |
| Yorkshire | ~24p/kWh |
Approximate figures based on Ofgem's Q2 2026 cap data. Exact rates vary by supplier, payment method and meter type. Check your supplier's website or your bill for your specific rates.
This is the most important thing to understand about the price cap. Ofgem explicitly designed it as a safety net, not a guarantee that you're getting a good deal. The cap stops you being ripped off - it doesn't mean your current tariff is competitive.
In fact, Ofgem itself has noted that households on fixed deals paid around £115 less than the cap on average last year. And with April's cap at £1,641, there are fixed tariffs available right now that could reduce your bill further - depending on your usage and region.
If you haven't actively compared tariffs recently, the cap drop in April is a good prompt to check whether you'd save more by switching to a fixed deal before the next quarterly review.
This is the question most households are asking. Here's an honest breakdown:
Arguments for fixing now:
Arguments for staying variable:
Our view: if you can find a fixed tariff that's cheaper than the cap with no exit fee, it's usually worth taking - you get the saving with no downside. If the fixed deal requires an exit fee, the calculation depends on how long you have left on your current contract.
The only way to know for certain is to compare based on your actual usage, not a "typical household" estimate.
Ofgem will announce the Q3 2026 cap (covering July to September 2026) by 27 May 2026. Early forecasts suggest it will remain broadly flat or fall slightly further - but these predictions change regularly as wholesale prices move. We'll update this post when the announcement is made.
Three steps:
1. Check whether you're on the cap or a fixed deal. Log into your supplier account or check your bill. If you're on SVT, the April cap rates apply to you automatically - no action needed for the cap change itself.
2. Compare your current rate against available tariffs. Don't compare against the "typical household" bill. Compare against your actual usage - the kWh figures on your bill give you a far more accurate saving estimate.
3. Check whether switching makes sense net of any exit fees. If you're mid-contract with an exit fee, that affects the calculation. A small monthly saving might take 6 months to offset a £50 exit fee.
This is exactly what EnergyScan is built for. Upload one bill and we'll:
It's £29 a year - less than the cost of a single overpaid month for most households - and the average saving we identify is between £200 and £500.
Or start with our free price cap checker - no account needed - to see how your region's rates have changed:
| Date | What's happening |
|---|---|
| 1 April 2026 | New price cap takes effect (£1,641 typical dual-fuel) |
| 27 May 2026 | Ofgem announces Q3 2026 cap (July–September) |
| 1 July 2026 | Q3 cap takes effect |
EnergyScan is an independent energy monitoring service. We earn a disclosed commission of £20 per fuel when you switch through us - this is factored into our comparison results so you can see the full picture. We never earn more by recommending a more expensive tariff.
Last updated: 7 March 2026. Rates confirmed from Ofgem's official Q2 2026 price cap announcement (25 February 2026).
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