Energy bills: What is happening to gas and electricity prices?

Since 1 April, charges related to the insulation scheme – called the Energy Company Obligation – have been scrapped, and for three years, renewable energy projects will be 75%-funded by general taxation instead of a levy on energy bills.

Before the changes, energy bills in England, Scotland and Wales included additional charges to help fund insulation for low-income households, and subsidise green energy projects such as wind farms and solar panels.

Nearly everyone in England, Wales and Scotland will benefit from this cut, although the amounts will vary between households.

However, the cost of maintaining and strengthening energy network infrastructure like power lines, cables and gas pipes is rising.

In December 2025, Ofgem said it had approved a £28bn investment to improve the electricity and gas grids in Great Britain.

It said this will strengthen the energy supply, and better shield customers from volatile energy prices. It will also reduce Britain’s dependence on gas.

Customers will pay part of the cost of the upgrade, through an additional £108 added to energy bills by 2031.

These charges started to appear from April 2026, adding about £6 a month to the bill for a typical household covered by the energy cap.

In April, the government also announced separate plans to change the way electricity is priced to ensure that household energy bills are less vulnerable to spikes in gas prices.

It also wants customers to benefit more from the cheaper running costs of renewable energy sources like wind and solar power.

The government has not said how much bills might fall but believes savings could be “significant”. It said the changes could be in place by spring 2027.