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Energy Price Cap Slashed 7% for 33 Million Households

2/27/2026

29 3 Full Breakdown

Summary

Story summary

Office of Gas and Electricity Markets (Ofgem) announced a 7% cut to the energy price cap, effective April 1, 2026.
The average annual bill for dual-fuel households falls to £1,641, a £117 cut.
The change stems from government budget decisions, including removal of policy costs.
The cap affects about 33 million households.
Experts urge fixed tariffs to save more, with the next price cap review in late May.

History

Historical Context

The UK government implemented the Energy Price Cap in 2016 to shield consumers from high energy costs, benefiting around 33 million households with an average bill reduction of £117. This initiative followed rising energy prices, including a significant increase to £3,549 in August 2022, which threatened millions with fuel poverty, highlighting ongoing challenges in energy regulation and consumer protection in the UK.

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Story summary

Office of Gas and Electricity Markets (Ofgem) announced a 7% cut to the energy price cap, effective April 1, 2026.
The average annual bill for dual-fuel households falls to £1,641, a £117 cut.
The change stems from government budget decisions, including removal of policy costs.
The cap affects about 33 million households.
Experts urge fixed tariffs to save more, with the next price cap review in late May.

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