You can use your current bills to calculate what your future bills will be
The cost of energy is set to fall from April after Ofgem announced its new energy price cap. The typical dual fuel household will now pay £1,641 a year for their energy from April 1, 2026. That’s down from £1,758 based on the cap set on January 1, 2026.
That’s the typical household, however. You can use your current bills to estimate how much your bills will change by using our interactive calculator.
The price cap sets the maximum you can be charged for unit rates and standing charges – so your bill can be higher or lower than the price cap figure.
The average unit rate for gas is falling from 5.93p per kilowatt hour (kWh) to 5.74p per kWh, while the standing charge is decreasing from 35.09p a day to 29.09p. The average unit rate for electricity is falling from 27.69p per kWh to 24.67p per kWh. The standing charge is rising from 54.75p a day to 57.21p a day.
Tim Jarvis, Director General, Markets, at Ofgem, 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.”
