Energy Bills Drop £117 in April, But Prepare for July Rise

Good news first: UK households saw their energy bills fall by an average of £117 from April 1, 2026. This brought the Ofgem price cap down to £1,641 per year for a typical dual-fuel household paying by Direct Debit, a welcome 7% decrease compared to the previous quarter.

This drop wasn't just down to falling global wholesale energy prices, which contributed about £38 to the saving. The government also stepped in, removing the Energy Company Obligation (ECO) and Renewables Obligation green levies from household bills. These costs, now funded through general taxation, are estimated to save you an average of £150 per year, automatically applied to your bill from April 1.

But Don't Get Too Comfortable: July Brings a Price Hike

Unfortunately, this relief is expected to be short-lived. Energy bills are widely predicted to rise significantly from July 1, 2026. Cornwall Insight, a respected energy consultancy, forecasts the July price cap to jump by 13% to £1,850 per year for a typical household. That's an increase of approximately £209.

Other major suppliers like E.ON, EDF, and British Gas echo this prediction, all forecasting the July cap to be around £1,850. The outlook for October 2026 is even bleaker, with predictions of further increases to over £1,870, and EDF Energy suggesting prices could start 2027 at £1,941.

Why Are Bills Set to Rise Again?

The primary reason for these expected bill hikes from July 2026 is a sharp increase in the wholesale price of energy. This climb followed the US and Israeli air strikes on Iran on February 28, 2026, and the subsequent disruption to global supply lines, particularly the Strait of Hormuz. When wholesale prices go up, so does the cost for your energy supplier, and ultimately, for you.

What This Means for Your Bills Right Now

From April 1 to June 30, 2026, if you're on a standard variable tariff and pay by Direct Debit, your average unit rates are:

• Electricity: 24.67 pence per kilowatt hour (kWh) and a daily standing charge of 57.21 pence.
• Gas: 5.74 pence per kWh and a daily standing charge of 29.09 pence.

These figures include 5% VAT and are averages across England, Scotland, and Wales. If you're a prepayment meter customer, your cap is £1,597 a year for typical use, and from April 1, you'll pay the same standing charge as Direct Debit customers.

Practical Steps to Take Right Now

1. Check Your Usage: Understand how much energy you're actually using. Smart meters can help with this, giving you real-time data.
2. Review Your Tariff: While the price cap sets the maximum, it's worth checking if any fixed tariffs are available that could offer more stability, especially given the predicted July rise. However, always compare fixed deals carefully against the current and forecasted price cap.
3. Budget for the July Increase: With a £209 annual increase on the horizon, consider setting aside a little extra each month now to soften the blow when the cap rises.
4. Energy Efficiency: Simple changes like turning off lights, unplugging unused electronics, and ensuring your home is well-insulated can make a difference to your kWh usage.

Where to Get Help

If you're struggling with energy costs, there are places to turn:

• Your Energy Supplier: They have a duty to help customers in financial difficulty and can offer payment plans or advice.
• Citizens Advice: Offers free, impartial advice on energy bills and other cost of living issues.
• Ofgem: The energy regulator provides information and guidance on your rights as a consumer.
• Government Support: Keep an eye on GOV.UK for any new cost of living support. The government announced an average of £150 off energy bills from April, and is also working on a Bill Discount Scheme for households near new electricity transmission infrastructure, with first payments due in early 2027.