Good news – our bills are going down from 1 April 2026
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From 1 April 2026, energy bills in Britain are set to fall following changes announced by the government in November’s Budget. The government said the measures would reduce bills by around £150 a year and the latest price cap update now confirms an average reduction of around £117 per year for a typical household under the price cap.
The reason the reduction is slightly lower than the £150 originally announced is because some other network and system costs have increased. Without the government’s intervention, the price cap would actually have gone up.
These figures are based on a “typical” energy user, which Ofgem defines as a dual fuel customer paying by Direct Debit who uses 2,700 kWh of electricity and 11,500 kWh of gas per year.
At Ecotricity, the reduction will apply to all our customers across all our tariffs from 1 April 2026. How much you personally save will depend on the tariff you’re on and how much energy you use.
As April is just a few weeks away, here’s everything you need to know about what’s changing.
Why are energy bills going down?
The reduction in the price cap is mainly due to changes in how some government schemes are funded.
The government has committed to part-funding the Renewables Obligation (RO) scheme for the next three years (until March 2029). Previously, the costs of this scheme were paid for entirely through energy bills.
The Energy Company Obligation (ECO) scheme also ends on 31 March 2026. However, not all suppliers were part of this scheme, so the way this affects energy bills will vary between suppliers.
Both schemes previously added costs to some energy bills and the government’s changes mean the overall cost included in the price cap has fallen.
How will I receive the discount?
You’ll receive the saving automatically through lower unit rates – that’s the cost per unit of electricity and gas you use.
Most of the reduction will apply to electricity prices, with a smaller reduction on gas.
Electricity standing charges have increased slightly, which means customers who use relatively little electricity and more gas may not see quite as large a reduction as the “typical” household used in the price cap calculation.
I’m on a fixed tariff – do I still benefit?
Yes! The reduction will apply to all Ecotricity customers, regardless of which tariff you’re on.
If you’re already on a fixed tariff, you won’t miss out.
Will all energy suppliers pass on the full reduction?
At Ecotricity, we’re passing a reduction on to all our customers from 1 April 2026.
How much your bill changes will depend on the tariff you’re on and how much energy you use. Because suppliers have different costs and may have participated in government schemes in different ways, the reductions customers see can vary between suppliers.
If you’re with another supplier, it’s worth checking with them how the changes will affect your tariff and whether they’re passing on the full reduction.
Is there any more specific information about the scheme and do I need to contact Ecotricity?
The reduction takes effect from 1 April 2026.
You can find more information about the government’s changes at gov.uk/your-energy-bill.
You don’t need to contact us. We’ll be writing to customers shortly to explain how the changes affect their prices. From 1 April, you’ll also be able to see your new rates in your online account.
How is it being funded?
The reduction mainly comes from changes to how the Renewables Obligation scheme is funded.
The government has committed to part-funding the scheme for the next three years, until March 2029. Previously, these costs were funded entirely through energy bills.
The Renewables Obligation Scheme (part-funded until March 2029) was set up to encourage renewable energy generation, such as sun and wind parks.
What makes Ecotricity different from other energy companies is that we take the money we make from our customers’ bills and use it to build new forms of green energy. We call it Bills into Mills and it means that by paying your bill every month you’re helping fight climate change. Every new wind or sun park we build reduces Britain’s reliance on fossil fuels to generate electricity. Customers on our green tariffs directly support this mission.
There’s also more information available on the government website about the upcoming changes to energy bills from April 2026.
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