Energy bills to fall in April after charges shake-up
BBC World
February 25, 2026
AI-Generated Deep Dive Summary
Energy bills are set to fall in April following significant changes announced by the UK government. The reduction will benefit households across England, Wales, and Scotland, with Ofgem's price cap adjustments playing a key role. While the extent of savings varies by household, all consumers can expect some relief, particularly those on variable tariffs who may see their bills drop by around 7%. This change follows the scrapping of the Energy Company Obligation (Eco) scheme and the shift of certain costs to general taxation, as announced in November's Budget. The typical annual household bill is expected to decrease by £150, with Cornwall Insight forecasting a £117 reduction for average energy usage.
The price cap changes will primarily lower electricity prices per unit, benefiting high-energy users, such as those relying on medical equipment, the most. Conversely, households that use more gas and less electricity may see smaller savings. Those on fixed tariffs will also benefit, with suppliers set to contact customers soon with specific details of their tariff adjustments.
Despite these reductions, challenges remain. The cost of living continues to rise due to increases in other bills like water and council tax, offsetting some of the energy savings. Additionally, household debt owed to energy suppliers exceeds £4 billion, highlighting ongoing financial struggles for many. Energy companies are stepping in with tailored tariffs and support, such as offering efficient appliances, but these efforts depend on understanding household circumstances.
Experts emphasize the importance of shopping around for competitive fixed deals, which could save consumers an additional £200 annually compared to relying solely on government changes. While April's bill reductions mark a positive step, ongoing volatility in wholesale gas prices and other economic pressures mean future energy costs remain uncertain.
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Originally published on BBC World on 2/25/2026