Vitality costs are dropping from April 1st, pushed by the federal government slicing some levies from electrical energy payments.
We all know how a lot Brits wanted some aid. We fought onerous for this modification and we’ll hold preventing for fairer costs.
You don’t have to do something: we’ll routinely apply the financial savings to your tariff.
Right here’s what it is advisable to know.
How do I be certain I get the value drop?
Brief reply: you don’t have to do something; we’ll apply it for you routinely.
- On a hard and fast tariff? Despite the fact that you have locked in your charges, we’ll decrease your electrical energy and fuel unit charges on April 1st to cross the financial savings on to you till the tip of your repair. After that, you’ll get new tariff choices based mostly on the most recent market prices (which may even take the coverage drops under consideration).
- On a variable tariff (Versatile Octopus)? Your charges will routinely drop on April 1st as a part of the brand new, decrease vitality value cap. The newest cap consists of the federal government’s cuts.
Hear from our founder, Greg Jackson, on what the value drop means for you:
Why are costs dropping?
Again in October, we gave the federal government a stark warning in regards to the affect of spiralling coverage prices on prospects. Within the November ‘25 Funds, the federal government acted: saying they might minimize ~£150 of coverage prices off the common vitality invoice, ranging from April 1st.
Right now, the regulator made that pledge a actuality when it set the vitality value cap for April – a minimize of £117, or round 7% – for a typical dual-fuel buyer.
The value cap protects prospects on commonplace variable tariffs, however we pledged to cross these cuts on to all our fastened tariffs as properly, in order that even prospects with locked-in costs might see the advantages instantly. We’re actually happy to see different suppliers have adopted swimsuit.
How a lot will I save?
The saving is a discount of your electrical energy and fuel unit charges, so how a lot you save is determined by what you’ve gotten and the way a lot you employ.
- On a variable tariff on the max vitality value cap, the financial savings shall be equal to round £117 a 12 months for a typical medium-sized home.
- On a fastened tariff, the financial savings shall be equal to round £130 per 12 months for a typical medium-sized home.
Why are fastened tariff prospects prone to save a bit extra?
Coverage prices are only one a part of the invoice. Different prices (like community prices) have elevated barely. Versatile Octopus prospects will see the affect of all of the totally different price adjustments on April 1st when the April value cap is available in.
Fastened tariff prospects have locked of their costs to keep away from these will increase throughout their repair, in order that they’re simply getting the coverage drop. After your present repair ends, you’ll get new tariff choices based mostly on the most recent market prices (which may even take the coverage drops under consideration).
You may save by fixing your costs: lock in with no exit charges on-line.
The federal government mentioned they have been slicing prices by £150. Why is the vitality value cap solely dropping £117?
The federal government’s cuts to coverage prices, and up to date drops in wholesale costs, have been offset by will increase to another prices. On this case, community prices have elevated £66 for the common buyer to assist pay for large upcoming grid upgrades.
All of the adjustments collectively work out to a £117 saving general.
July forecast is predicated on the most recent obtainable info and is topic to vary
The place will we go subsequent?
We all know how badly Brits want their payments to return down.
Vitality is the second-biggest family expense after hire or mortgage.
We’ve received an extended historical past of preventing for fairer payments – again in 2018, once we have been only a tiny startup, we led the cost to usher in an vitality value cap whereas incumbents fought in opposition to it. And we’ve been preventing ever since.
Our director of regulation, Rachel Fletcher, addressed parliament again in October with a stark warning that coverage prices have been getting uncontrolled. Her message received cross-industry assist from different giant suppliers and we’re so happy to see the federal government take motion on behalf of shoppers.
So, it is a welcome change, however it’s only the start. British vitality payments stay a few of the highest on the planet.
We’ll hold working relentlessly to make vitality fairer for all.
What’s the distinction between the federal government’s ‘coverage value drop’ and the vitality value cap?
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- The federal government introduced cuts to vitality coverage prices within the final Funds (November ’25), coming into pressure from April 1st.
- The vitality value cap is about quarterly by Ofgem, the vitality regulator, based mostly on the most recent provide prices (together with coverage adjustments). It units the utmost charges a provider can cost on a variable tariff. The April ‘26 cap components within the authorities’s coverage price cuts.
How does it work for good tariffs?
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For those who’re on a hard and fast good tariff, we’ll apply the coverage minimize to your charges routinely from April 1st. For those who’re on a variable good tariff, we replace our costs now and again based mostly on the most recent market prices and can apply the coverage cuts on high of that from April 1st.
