The energy price cap will drop by 7% in April - should you fix a tariff?
Energy bills for anyone on price-capped tariffs will drop by 7% from 1 April, energy regulator Ofgem announced this morning. This means that homes using a typical, medium, amount of gas and electricity will pay around £1,641 a year, or £137 a month.
You'll save around £117 per year (or £9.75 per month) compared with the current price capped rates of £1,758 per year.
This is the biggest change to price-capped rates since last summer, when the price cap also dropped by 7%. Over the colder months it has crept back up by a smaller amount.
The price cap is not a limit on your total bill. It's a cap on the cost of each unit (kWh) of gas and electricity you use.
If your home uses more than the average amount of gas and electricity, you'll pay more than the estimates. But if your home uses less, you'll pay less.
Use our free, independent energy comparison service to compare gas and electricity prices and find the best provider for you.
Does the energy price cap affect me?
Changes to the energy price cap apply to your household's bills if you're on a:
- Standard variable tariff. They're also known as standard, default, rolling, flexible or out-of-contract tariffs. Their rates usually change directly in line with the price cap.
- Tracker tariff. Offered by a handful of suppliers, these guarantee a fixed discount on the price cap, regardless of how it changes.
The price cap doesn't apply to you if you have signed up to a fixed energy tariff.
However, fixed tariff customers will also see a cut to their bills on 1 April, thanks to the government removing the costs of some policies from everyone's energy bills.
Find out more: What is the energy price cap? and why all households will see an energy bill cut from 1 April.
What will my energy cost in April 2026?
The new average rates for variable tariffs, for those paying by direct debit, will be:
- Electricity unit rate: 24.67p per kWh (currently an average 27.69p)
- Electricity daily standing charge: 57.21p per day (currently an average 54.75p)
- Gas unit rate: 5.74p per kWh (currently an average 5.93p)
- Gas daily standing charge: 29.09p per day (currently an average 35.09p).
At these new rates, a typical household, with medium energy use and paying by monthly direct debit can expect to pay around £137 per month for gas and electricity used from April to June. At the moment, the same household pays around £147 per month.
A household with medium energy use gets through 11,500kWh of gas and 2,700kWh of electricity per year. This is defined by energy regulator Ofgem, which sets the price cap.
You'll pay a different amount if you use more or less than this.
If you use a smaller amount of electricity, the 2.46p/day increase in the daily standing charge will have a bigger impact on your bill. This is because it makes up a greater proportion of your bill. It will also have a bigger impact if you don't have a gas supply.
If you have a prepayment meter, you pay the same standing charge as direct debit customers but slightly cheaper rates per kWh. The prepayment price cap for this period is £1,597, which is £44 cheaper than the direct debit cap level.
Below we've compared the annual energy costs of example homes using low, medium and high amounts of energy, paying current rates and the new rates from 1 April.
| Fuel type | Low user | Medium user | High user |
|---|---|---|---|
| Current electricity rate (27.69p per kWh) | £498 | £748 | £1,135 |
| New electricity rate (24.67p per kWh) | £444 | £666 | £1,011 |
| Current electricity standing charge (54.75p per day) | £200 | £200 | £200 |
| New electricity standing charge (57.21p per day) | £209 | £209 | £209 |
| Current gas rate (5.93p per kWh) | £445 | £682 | £1,008 |
| New gas rate (5.74p per kWh) | £431 | £660 | £976 |
| Current gas standing charge (35.09p per day) | £128 | £128 | £128 |
| New gas standing charge (29.09p per day) | £106 | £106 | £106 |
| Current total annual bill | £1,271 | £1,758 | £2,471 |
| New total annual bill | £1,190 | £1,641 | £2,302 |
Based on Ofgem's typical annual domestic consumption values for a low user (7,500kWh gas and 1,800kWh electricity), medium user (11,500kWh gas and 2,700kWh electricity) and high user (17,000kWh gas and 4,100kWh electricity).
How much you'll pay for your energy varies by region and how you pay. Suppliers may also plot out their unit rates and standing charges differently.
Your energy supplier should contact you to let you know your new prices before they change.
The price cap doesn't apply if you live in Northern Ireland.
Why is the price cap falling?
The costs of two government schemes will be removed from all energy bills from 1 April. This is the main reason for the overall cut to the price cap, according to Ofgem.
The regulator also noted that wholesale prices, which continue to make up the largest portion of the bill, are currently stable and have fallen by around 6% over the last three months, which has also been a contributing factor.
The increase in daily electricity standing charges is due to higher costs associated with the operation and maintenance of the country's energy networks. However, Ofgem has also confirmed a decision to move the Warm Home Discount costs from standing charges to the unit rate, which is why the gas standing charge has decreased. Overall, standing charges for a household using both fuels have dropped by an average 4p per day.
Should I get a fixed energy deal?
More than half of households are on variable tariffs that change with the price cap.
But we know this isn't the cheapest option. You can usually save money by switching from a price-capped tariff to a fixed-term tariff.
When we checked on 23 February 2026, we found more than 30 tariffs costing less than the price cap that applies until 31 March. The cheapest would save nearly £240 per year compared with the cap for a typical medium use household.
Compared with the new price-capped rates, the cheapest would still save over £120 per year. Energy suppliers tend to adjust the fixed tariffs they offer when the price cap changes so keep an eye out for cheaper rates now that we know that the price cap is decreasing.
Note that from 1 April, fixed tariff electricity rates will also be cut when the costs of two government schemes are removed. So if you're comparing prices, it's worth knowing how your rates will change from 1 April, as well as whether the rates you're seeing in comparison tables have taken account of this adjustment.
See the table of the latest cheap energy deals in our guide on how to get the best energy deal.
Price isn't the only reason to switch energy provider
A lower price was the most significant reason for 45% of those who switched energy supplier and actively chose their new firm.
But it's far from the only reason customers told us they switched. The good reputation of the supplier was most significant for a third of switchers,. while at least one in 10 people told us that the following were significant reasons for them switching:
- To get better customer service
- Having the same supplier for both fuels
- Recommendation from family, friends or colleagues
- Recommendation by energy experts
- Having been a customer of the supplier in the past
- For a more sustainable or environmentally friendly supplier or tariff.
We surveyed nearly 12,000 members of the general public in September and October 2025 who were at least jointly responsible for paying the gas and/or electricity bills in their household.
See which suppliers have good customer service and come recommended by their customers: the best energy suppliers for 2026.
What if I can't afford my energy bills?
If you're finding it hard to afford your energy bills, there are several things you can do to help.
First, get in touch with your supplier. Though you might not feel like it, it's the best way to get help.
Suppliers must offer payment plans you can afford. You can ask for 'emergency credit' if you prepay for your energy and can't top up.
Your energy provider might also be able to:
- give you more time to pay
- offer you a payment break
- reduce your payments
- help you access a hardship fund.
Use our guide to getting help if you're struggling to pay your energy bills.
