Energy advice update: Energy price cap changes explained
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Our energy advice team works to support people across Greater Manchester and Lancashire who are struggling with energy debt or bills, or need support with how to make their home more energy-efficient.
Here, they tell us more about the recent energy price cap change, what it means, and what you might consider as a result…
What does the energy price cap change mean for me?
The energy price cap changed on 1 April 2026, with Ofgem the energy regulator announcing that prices will be falling by 7 per cent. This is part of Ofgem’s quarterly review of the price cap with the next one due on 1 July.
The price cap is an upper limit placed on the cost of your unit charges, not on the overall cost of your bill.
People on a standard variable tariff will see their bills reduce in price. This reduction is on the unit rates that you are charged, as well as your standing charges and will not necessarily impact any direct debits you have set up.
These prices can differ regionally or by tariff type, but the average reduction will look like this:
Prices in March:
- Electricity unit rate: 27.69p/kw, with standing charge 54.75 pence per day
- Gas unit rate: 5.93p/kwh, with standing charge 35.09 pence per day
Prices for April:
- Electricity unit rate: 24.67p/kwh, with standing charge 57.21 pence per day
- Gas unit rate: 5.74p/kwh, with standing charge 29.09 pence per day
Overall this price decrease is expected to save the average household £117 over the course of a year. However, these savings will differ depending on your own usage, and higher usage households will save more than those using a smaller amount.
What should I do?
If you are on a standard variable tariff you don’t need to do anything as your prices will decrease automatically.
Those on a fixed tariff will be unlikely to receive the discount as they locked in their price for a set period of time.
However, your fixed term tariff will protect you from any future price increases that are likely to be coming up.
Some suppliers may take it upon themselves to apply the discount but this is at their discretion. With prices the lowest they have been for a while, now would usually be a good time to find a fixed term tariff to lock in as the prices would be more favourable. However recent global events have caused many suppliers to withdraw fixed term deals from the market or offer ones with much higher prices.
Planning for the future?
Recent global events continue to drive up energy prices across the globe.
While much of the energy in the UK comes from renewable sources such as wind power, we are still very reliant on gas and oil when it comes to setting our prices.
Those prices are therefore very likely to rise when the cap is next up for review in July, and then again in October and January. We won’t know by how much until closer to the date but a rise is expected.
With energy prices already feeling high, this will be a concern to many of us. However there are some actions you can take that may be able to help better insulate you from these price rises.
Find a fixed term tariff…
By using price comparison websites you may be able to find a fixed term tariff.
This rate will likely be higher than the current variable rate, so choosing one of these will mean you miss out the recent price reduction. However, the rates offered may be lower than the expected rises coming later this year.
Locking in now may be more expensive the short-term but could see potential savings over the next year.
Fixed term tariffs may be hard to find as suppliers will be anxious about offering long term deals with such uncertainty. It is also important to note that prices can change rapidly on the energy market – our advice here represents our best guess of where the market will be going in the future, but should not be taken as a sure fact.
Raise your monthly direct debits…
Raising your monthly direct debits now while prices are cheaper could be a good way to protect yourself in the future.
With prices lower this month it may be a good idea to up your monthly payments. This will mean you build up some credit during a period of cheaper energy rates which you can save on your energy account. This will give you more of a buffer if prices go up significantly next winter. Remember that any credit you do build up can be refunded on request.
We’re always happy to help and you can find us at one of our regular free drop-in sessions, or can get in touch by emailing energyadvice@caritassalford.org.uk if you have any questions about the price cap changes or concerns about affording your energy bills. We can also be contacted by calling 0161 205 2754.
