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Major Suppliers Confirm £150 Cut to Household Energy Bills From April 2026

The reduction arrives via a lower price cap as policy costs shift from bills to general taxation.

Overview

  • British Gas, Octopus, E.ON, EDF and OVO say they will pass the full saving to customers on both variable and fixed tariffs from April 1.
  • Analysts expect the energy price cap to drop by roughly 6% to 7% in April, translating into the £150 average annual reduction.
  • Martin Lewis estimates unit rates will fall by about 3.5p per kWh for electricity and 0.35p per kWh for gas when the changes take effect.
  • Customers do not need to take any action because suppliers will automatically adjust unit rates across tariffs, including fixed deals.
  • Most households will receive the full amount, though a few very small suppliers not in the ECO scheme may pass on about £90 instead.