Earlier this week, Ofgem announced its changes to the energy price cap for the period from April 1 to June 30, 2026
What does the latest Ofgem announcement mean for you? (stock image)(Image: Getty Images/iStockphoto)
An expert at British Gas has delved into Ofgem’s latest energy price cap announcement and what this could mean for you. From April 1 to June 30, 2026, prices are set to reduce by £117, or 7%, for a typical household that uses both electricity and gas and pays by Direct Debit.
This means affected households will save around £10 a month and, according to the regulator, the annual cost for dual-fuel homes will be around £1,641. Yet, not everyone is on the energy price cap, and those who are can still make savings – here’s what you should know.
Taking to Instagram on February 25, a British Gas expert said: “The price cap has changed today. What does that mean for me? From April 1, your bills could change. The price cap determines the maximum amount that we can charge per unit of energy that you use.
“If you’re on a standard variable rate, your rates are going down. To make things simple, I put the average savings on screen. If you’re on a standard variable tariff, you could still save more money by switching to a fixed price tariff. You can easily go into your account and switch tariffs.
“You can do this online, you can do it in the app, or you can call us. We’ll just be able to tell you exactly what tariff you’re on now and whether you’d be able to save by switching to another tariff.”
Although Ofgem has provided a general estimate of what ‘typical’ households might expect to pay, the precise amount depends on factors such as your location, meter type, and chosen payment method.
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The changes won’t apply to everyone either, but they generally cover those on a default tariff who pay for their electricity and gas through standard credit, Direct Debit, prepayment meter, or Economy 7 meter.
Commenting on the changes earlier this week, Tim Jarvis, Director General, Markets, at Ofgem, also said: “Today’s announcement will be welcome news for many households. Wholesale energy prices have fallen in recent months, and we’re investing in our network to safeguard the future energy system. The main driver of today’s reduction is the change to policy costs announced by the Chancellor in the budget.
“Our focus at Ofgem remains on bearing down on the costs within our control, and unlocking the investment needed to support the transition to a more stable energy system over the longer term.
“We’re also seeing encouraging signs of greater engagement and competition, with switching increasing by almost 20% year on year. More households are choosing time‑of‑use tariffs that offer cheaper off‑peak rates, and suppliers are offering a wider range of products, including deals with savings at evenings or weekends.
“The price cap protects households from overpaying for energy, but it’s a safety net. Last year, consumers on fixed deals paid around £115 less than the cap on average, so we’d encourage people to speak to their supplier about the options available and consider whether a different tariff or payment method could help bring their bills down further.”
The UK Government also previously announced, in the Autumn Budget, its commitment to reduce energy bills by around £150 on average from April, in response to cost-of-living pressures.
The statement, released in November, reads: “Families across the UK are feeling the squeeze of still too high inflation. The Budget delivers a set of measures to remove around £150 of costs on average from household energy bills from April next year.
“Energy costs will be reduced by the ending of the Energy Company Obligation, which is currently funded through bills, and through the government funding 75 per cent of the domestic cost of the legacy Renewables Obligation for three years. This is on top of extending the £150 Warm Home Discount to a further three million of the poorest households.”
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