REGULATORY · MARKET STRUCTURE · UK
UK energy price cap cut for April–June 2026
Change
Ofgem cut Great Britain’s energy price cap by 7% for 1 April–30 June 2026, lowering the typical annual bill by £117 to £1,641.
Why it matters
The regulator set a 7% reduction in the price cap for the 1 April to 30 June period, taking the typical annual bill to £1,641 (about £10/month less for an average dual-fuel household). This is stated to be more than £200 lower than a year ago, resetting year-on-year cost comparisons for Q2. Ofgem attributed the move to recent wholesale price declines and to changes in policy costs announced by the chancellor in the budget. The cap level directly constrains what suppliers can charge customers on default tariffs during the quarter, shifting near-term billing and margin parameters.
Implications
- • Lower regulated household energy charges apply from 1 Apr through 30 Jun 2026
- • Supplier pricing on default tariffs is constrained at a lower cap level for Q2
- • Year-on-year household energy cost comparisons shift (cap >£200 lower than a year ago)
- • Budget-driven policy cost changes now flow through to regulated bill levels
Who is affected
- • GB households on default energy tariffs covered by the Ofgem price cap
- • Energy suppliers serving customers on capped/default tariffs
- • UK government/treasury (policy cost changes reflected in bills)
- • Energy retailers’ finance and billing operations tied to cap-period pricing
Source
Topics
World & Politics Policy & Regulation Business & Markets Economy Energy & Power Grid & Utilities