News

Energy bills set to fall 7% from 1 April under Ofgem price cap

Ofgem has announced that the average household energy bill will fall by 7% from 1 April 2026.
The impact of the year-on-year changes could see the number of households paying more than 10% of their income on energy fall from 13.2m to 11.2m.
However, the changes will see energy bills remain £599 (57%) above winter 2020/21 and £73 (5%) above what they were on 1 July 2024.
Significant changes to unit costs and standing charges will take effect from 1 April 2026 and initial analysis suggests some households will see much bigger reductions than others.
A low usage household will see their bill reduce by around £80, while high usage households might see a £140 saving.
Using data from Scope and Mencap, the End Fuel Poverty Coalition has calculated that those reliant on energy for disability or health needs could see even greater savings, but will still experience a 64% ‘energy poverty premium’ with a typical bill much higher for these groups.
It remains unclear when and how energy firms will start to reflect these changes in the rates they advertise. The Government is expected to make a further announcement next month.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said:
“Government decisions are starting to make a difference and today’s fall in the price cap will bring some welcome relief to households who have been under intense pressure from high energy costs.
“But, of course, bills remain hundreds of pounds above pre-crisis levels and for millions of families in cold, damp homes this will not feel like the cost of living crisis is over. If the country is going to tackle energy affordability for good, this must be the start of deeper reform, not the end of the job.
“That means bearing down on excessive market trading costs, dealing with the growing mountain of energy debt, taking a hard look at how infrastructure costs are recovered from households and doing more work to reduce exposure to volatile gas prices.
“At the same time, the energy industry and its ultimate owners, including hedge funds and overseas investors, must continue to face scrutiny for the healthy profits made at the expense of households
“With the changes to both unit rates and standing charges still working through the system, consumers may need to be cautious about rushing into fixed deals right now. Bill payers may want to wait for the dust to settle and carefully check their specific usage to ensure any switch delivers the maximum savings.”
Hannah Wall, Community Heat & Energy Lead at climate charity Possible, said:
“Lowering the energy price cap by removing levies from customers’ bills is a welcome step forwards to support people who have been struggling with high bills. But far too many people are still living in energy poverty, and face impossible choices to keep their homes warm.
“Energy bills remain significantly higher than they were before the energy crisis, driven by soaring gas costs. The structure of our energy system still leaves us exposed to volatile fossil fuel prices. It’s unfair that our electricity bills continue to be tied to global gas markets, creating a distortion that makes it harder for people to switch to clean electric heating, which should be cheaper than dirty gas.
“We need faster action from the government to deliver promised reforms to the electricity market to ensure everyone can afford a warm home powered by clean, climate-friendly heat and energy.”
Independent Age chief executive Joanna Elson, CBE, said:
“Today’s energy price cap announcement will provide some brief respite for the older people in financial hardship, as a typical household energy bill is dropping by almost seven per cent to £1,641 from April.
“However, energy bills are still extremely high, and the older people on low incomes we support are seeing their budgets stretched beyond breaking point.
“This winter has been brutal, we have heard dreadful accounts of people in later life sitting in cold, dark homes, or cutting back on other essentials such as food so they can turn a radiator on.
“This poses a health risk to older adults and cannot be allowed to continue happening.
“There are immediate and long-term actions the UK Government can take to support people on low incomes who cannot afford to heat their homes.
“The recent Warm Home Discount extension was welcome, but at £150, it does not go far enough in supporting those in financial hardship.
“We want to see it increased to £400 to match the high cost of energy bills.
“Targeted bill support is also needed in the form of an energy social tariff that protects customers on low incomes from future spikes in costs.
“If the UK Government is serious about tackling the cost of living and raising living standards, it should take meaningful action to lift people out of fuel poverty.”
Jonathan Bean from Fuel Poverty Action, commented:
“Customers should not be fooled: energy bills are still £600 higher than 5 years ago, meaning the suffering will continue for millions of us.
“Up to £500 of our bills is energy firm profits which means that Ofgem and the Government are failing to protect us.
“We especially need a fairer deal on electricity pricing which is four times higher than gas, despite wind and solar energy being cheaper.”
James Taylor, director of strategy at Scope, added:
“Life costs a lot more if you’re disabled. The need to run lifesaving equipment or keep the heating on year-round means bills continue to be steep.
“We’re calling on Ofgem to do much more to protect disabled customers, and for the government to introduce a discounted energy deal for disabled people.”
Uplift Deputy Director Robert Palmer said:

“This is welcome news for millions of households as it shows the UK is starting to turn a corner on energy bills.

“Weaning ourselves off volatile gas is the only real long term route to affordable energy bills and last year we generated record-breaking amounts of renewable energy, with wind power cutting the wholesale cost of electricity by almost a third.
“Compare this to America where Donald Trump is blocking renewable energy and doubling down on fossil fuels, and electricity bills are rising.
“Today’s Price Cap shows we’re on the right path. It’s not just our bills that are benefitting from more renewables, our planet will too. This is a change that cannot come soon enough as already we’re seeing the impacts of climate change caused by our oil and gas dependency and the costs it imposes on everyone, whether that’s flooded homes and businesses or rising food prices.”

British Gas owner still cashes in as households keep facing high bills

The owner of British Gas / Scottish Gas has reported underlying operating profits of £814 million for last year, down from £1.55 billion in 2024, making £163m from its retail businesses.

But the firm is no longer simply a retail supplier:

  • Import reliance: Analysis shows the UK will soon be unable to meet heating demand from domestically extracted gas by 2027, making imported gas and the companies that control its supply even more critical to national energy security.

  • Gas supply: Through a strategic import arrangement with Equinor, Centrica effectively controls around 10% of the UK’s gas supply, a share that gives it influence over the market just as the country becomes increasingly reliant on gas imports.

  • Import infrastructure: Centrica also has part-ownership of a key gas import terminal, further underpinning its position at the heart of UK gas flows, pricing and security.

  • Wholesale gas and power markets: Centrica is a major player in the market trading and optimisation of energy supply. This means it can profit from the volatility in the energy system. In July 2023, it was reported that market price movement meant that its energy marketing and trading division alone made £1.4 billion in profit during the year.

  • Control of storage: Centrica remains the owner of the Rough gas storage facility, a key piece of infrastructure that helps balance supply in winter and mitigate price volatility, yet storage has sat below optimal levels in recent seasons, exposing households to supply risks and higher costs, as the firm argues it needs state support.

  • Customer concerns: British Gas, owned by Centrica, was at the centre of the forced prepayment meter scandal, where vulnerable households were switched onto pay-as-you-go energy or faced the threat of disconnection. A formal investigation into the firm is still ongoing, almost three years after it was opened.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Centrica’s profits are still mind boggling sums for people living in fuel poverty.

“The firm is much more than a household supplier, with real leverage over the nation’s energy supply and security. Through gas import deals, control of storage, stakes in key facilities and role in energy trading and price setting, Centrica sits at the centre of a market most of us only feel when the bills arrive.

“This influence matters because the country is becoming more reliant on imported gas as North Sea output declines. In that context, huge annual profits are not an accident, they reflect a system where utility companies extract value from relatively high bills while households struggle, especially as millions live in cold, damp homes.

“Ministers must ask whether the energy system really works for people, not for the big energy giants that have generated over £125bn in UK profits since 2020.”

Uplift Deputy Director Robert Palmer said:

“The latest profits add to the over £9 billion that Centrica has made since the start of the energy crisis in 2020, all while millions of people have struggled to afford their gas bills.

“The British Gas owner wants us to stay hooked on expensive gas, even though the UK has burned most of the gas that was in the North Sea. Regardless of any new drilling in the UK, we will be dependent on gas imports for nearly two thirds of our gas needs in just five years time and almost 100 per cent by 2050.

“The way to lower bills long term is to build more homegrown renewable energy and free ourselves from gas, whether that’s supplied by Putin’s Russia, Trump’s America or profit-hungry oil and gas companies.“

Cold homes are still killing people in fuel poverty

New official figures from the UK Health Security Agency reveal that more than 2,500 people died in England in connection with cold weather last winter.

A spokesperson for the End Fuel Poverty Coalition, commented:

“It’s truly shocking that more than 2,500 people died in connection with cold weather in winter 2024/25, most of them older people. It lays bare the awful reality that far too many pensioners are still trapped in cold, damp homes that put their health and lives at risk.

“Volatile gas prices, poor quality housing and a lack of adequate support have all contributed to this crisis. And in 2024/25 the situation was made worse by decisions to remove Winter Fuel Payments from many pensioners. We warned this would leave vulnerable older people exposed, and these figures show the deadly consequences of failing to protect those most at risk.

“These deaths also underline the need to go further with cold weather support. Cold Weather Payments too often arrive only after prolonged freezing conditions, when the damage is already being done. Support should be automatic and triggered in advance of forecast cold snaps, not weeks later.

“Ultimately, the only lasting way to stop people dying in cold homes is to tackle the root causes. That means targeted financial support for those most at risk, rapid upgrades to the coldest and leakiest homes through the Warm Homes Plan and wider reform of energy pricing so households are not left paying the price of volatile gas markets.

“No one should be facing another winter where staying warm is a matter of life and death.”

Jonathan Blades, from Asthma and Lung UK, said:

“Freezing temperatures can be particularly dangerous for people with lung conditions.

“Cold air can cause the airways to narrow, making breathing more difficult, it can also irritate the lungs and worsen symptoms of lung conditions like asthma and chronic obstructive pulmonary disease.

“This can also make it harder for the body to fight off respiratory infections such as colds and flu, which are still circulating.”

Energy bills likely to fall by over £100 from 1 April

Cornwall Insight’s latest price cap prediction would suggest average energy bills will fall by £117 from 1 April to £1,641.

This represents an increase from their previous prediction (£1,620), caused by the spike in gas prices earlier this year. If Ofgem confirms this prediction, it will still leave average energy bills £599 above pre crisis levels and £73 above the level at 1 July 2024.

A spokesperson for the End Fuel Poverty Coalition, commented:

“The April price cap will see one of the biggest changes in the make-up of energy bills in recent years.

“Budget decisions to remove costs from bills and Government moves to alter how the Warm Home Discount is paid for, will mean changes across standing charges and unit costs. Even those on fixed tariffs will need to look carefully to check that energy firms pass on the changes and potential savings to these customers.

“Meanwhile, volatile gas prices earlier this year also make the wholesale element subject to uncertainty and may create an upward pressure on bills for those on the standard variable tariff.

“Households will need to keep a close eye on Ofgem’s announcement next week and pay careful attention to the changes in unit costs and standing charges, rather than focus on the headline ‘average energy bill’ figure.”

Uplift Deputy Director Robert Palmer said:

“Predictions that energy bills will fall in April suggest that the UK is starting to turn a corner on energy bills.

“Last year we generated record-breaking amounts of renewable energy, with wind power replacing gas and reducing the wholesale cost of electricity by a third. This was partly possible because of the government’s clean power plan.

“The only real, long-term route to lowering bills is to get off volatile gas, whether that’s supplied by Putin, Trump’s America or profit-hungry oil and gas companies.

“It’s not just our bills that will benefit from more renewables, it’s our planet. Already we’re seeing the impacts of climate change caused by our oil and gas dependency and the costs it imposes on everyone, whether that’s flooded homes and businesses or rising food prices.”

Windfall Tax in the firing line as Blair Think Tank backs energy industry

The Tony Blair Institute has repeated its call for an expansion of gas production in the North Sea and an end to the energy firm Windfall Tax.

The think tank has links to the Saudi government, the United Arab Emirates, Elon Musk’s Starlink [pdf, p8] and Trump apply Larry Ellison.

A spokesperson for the End Fuel Poverty Coalition, commented:

“The Tony Blair Institute’s so-called ‘reset’ looks less like a fresh start and more like a defence of fossil fuels and an energy industry that has made over £125bn in UK profits since 2020.

“For the Institute to call for the Windfall Tax to be scrapped, while energy giants post extraordinary profits and millions live in cold, damp homes, is staggering. That tax exists because companies benefited from a crisis that devastated household finances.

“Removing the Windfall Tax would reward profiteering and shift the burden back onto households that are still paying the price of Britain’s over-reliance on gas.

“It was exposure to volatile global fossil fuel marketsthat sent bills through the roof, not climate targets and doubling down on new North Sea exploration will not lower bills.

“Gas is sold at international prices and the North Sea is a declining geological resource that cannot meet the country’s heating needs in the long term. The answer to high bills lies in accelerating homegrown renewables, reforming electricity pricing and investing in energy efficiency, not returning to the solutions of the past.”

Jess Ralston from the Energy and Climate Information Unit said:

“With many households still facing debts from the gas crisis of the past few years, focussing on bringing down bills is particularly key for them. Electrification, through the adoption of net zero technologies like heat pumps and EVs, will gradually reduce our vulnerability to the volatility of international oil and gas prices.

While the thrust of this report is around cheaper power, it’s not clear how many of its recommendations will lower bills. More drilling in the North Sea won’t make any real difference to the gas bills British homes pay because it’s international markets driven by Putin and Trump that dictate the price. The regulator’s own analysis shows more drilling will make very little difference to how steeply North Sea output continues to decline.

“Renewable wind power lowered the wholesale power price by around a third in 2025, squeezing more expensive gas power off the system. Every wind turbine we build or solar panel we install means the UK is less dependent on gas imports and less vulnerable to volatility in the gas price. We don’t have to import wind or sunshine.”

Meanwhile a spokesperson from the Green Alliance think tank added:

“We don’t need to rethink a clean power plan that’s working – the UK generated record-breaking amounts of renewable energy last year, and wind power replacing gas cut the wholesale cost of electricity by a third. Tony Blair’s think tank rightly points out that we need to make sure businesses and families save as a result, but gives few suggestions for how to do this. Given the former politician’s extensive ties to petrostates and oil and gas firms, it’s a bad look to see his institute call for more drilling in the North Sea, which will do nothing for our energy security.”

Heat pump sales hit record high but major barriers still remain

Data from the Heat Pump Association has revealed there were a total of 125,037 units of air, ground, water and other heat pumps sold last year, a 27% increase on 2024.

More than a third of the heat pumps (36%) were manufactured in the UK, an increase on the number for 2024, the figures show. But the industry warned the growth rate in the sector has slowed compared to last year.

A spokesperson for the End Fuel Poverty Coalition, commented:

“High levels of heat pump sales are a welcome sign that cleaner heating is starting to scale up and the fact more than a third are now manufactured in the UK shows the potential for jobs and investment alongside lower emissions.

“But the reality is that 125,000 sales a year is still a long way from what we need to see. With gas prices continuing to show volatility and the UK unable to meet domestic heating needs from the depleting North Sea gas reserves from next year, moving onto heat pumps will be the way forward for many households.

“But moving onto a heat pump should come with a Warm Homes Guarantee, with independent advice, strong consumer protections and a clear promise that homes will be more comfortable after work is done.

“Ministers must also tackle one of the biggest barriers holding back heat pump take-up: the high cost of electricity. Without reform of electricity pricing and targeted support for those in fuel poverty, clean heating will remain out of reach for too many households.”

BP posts over £5 billion annual profits

BP has reported fourth-quarter profits of £1.12 billion and overall “underlying replacement cost profits” of £5.47 billion for 2025, just over £1 billion less than in 2024.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Despite city watchers saying that BP’s profits have fallen, the reality is that the firm is still generating billions of profit every year. This is just another reminder that energy giants continue to make billions while households face a fifth winter of hardship.

“These corporate windfalls do not occur by accident, they reflect a system where profits flow out to shareholders as millions live in cold, damp homes. Ministers must ensure the energy system is on the side of consumers, not the companies that have generated more than £125bn in UK profits since 2020.”

Tessa Khan, Executive Director of Uplift added:

“These results – on the back of Shell and Equinor’s profits last week – are a stark reminder why we as a country urgently need to move away from volatile oil and gas by developing more homegrown renewable energy that would shield households from global price shocks and create stable, long-term jobs.

“BP is moving away from renewables just at a time when the costs of climate change are becoming clear to everyone – whether that’s people struggling with flooded homes and rising food prices, or farmers and businesses losing income from extreme weather.

“BP is also turning its back on the UK’s energy workers who, as the North Sea basin declines, need secure energy jobs that have a future. This is a company that puts its profits above all else.

More renewables approved with 10,000 jobs supported

Ministers have announced the largest ever procurement of solar projects in the UK alongside new onshore wind farm developments and three new tidal energy projects.

Taken together with previous announcements on offshore wind results, the Government has estimated that the announcements since 2024 will deliver enough power for the equivalent of 16 million homes.

The “strike price” for the new onshore wind has been agreed at £72.24 per mega watt hour generated (/MWh) and new solar at £65.23/MWh. The new plans will support around 10,000 jobs.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Households are still paying the price for years of exposure to volatile gas markets. Cheaper, homegrown renewables don’t just help the planet, they can help cut bills by pushing expensive electricity from gas-fired power stations off the system.

“A comparison with fossil fuel generated electricity puts into perspective the deal households get from renewables. Any new gas-fired power stations generate energy at close to £150 per megawatt hour, whereas the last offshore wind auction came in at around £90/MWh and today’s auction strike prices are even lower.

“But affordability must be guaranteed, not assumed. As more private investment flows into clean power, consumers need transparency on how these contracts affect bills, clear limits on profits and further electricity pricing reform so the benefits are passed on to households.”

The announcement comes after Ministers also confirmed £1bn in funding for new community energy projects which the End Fuel Poverty Coalition described as having “real potential to help bring down bills while keeping the benefits of clean power rooted in local places.”

Investment aims to boost community energy schemes

The Government has announced a £1 billion “local power plan” to expand community-owned clean energy projects across the UK, from solar panels on public buildings to small-scale hydro schemes.

Ministers have called the plan “the biggest ever investment in community energy.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“This boost for community energy has real potential to help bring down bills while keeping the benefits of clean power rooted in local places.

“For too long, households have been trapped paying the price of a broken energy system where profits flow out to major companies, while communities living in cold, damp homes see little return. Community-owned renewables can start to change that, cutting costs, strengthening energy security and generating income for vital local services.

“But clean energy should not just be about new generation, it must also be about guaranteeing warmer homes, lower energy bills and building a better energy system.”

Shell and Equinor deepen UK fossil ties as more profits posted

Energy giant Shell has posted adjusted profits for the fourth quarter of £2.39 billion and has announced another £2.7 billion of share buybacks on top of a dividend hike.

It comes the day after Equinor also large profits. The two firms have recently announced they will merge their offshore drilling operations in the UK, with each company owning 50% of the joint venture and Equinor contributing its £1.3 billion UK ‘tax shelter’ – or credits that can be used against paying future UK taxes.

A spokesperson for the End Fuel Poverty Coalition said:

“With Shell reporting another substantial profits haul, it’s worth remembering that these corporate windfalls do not occur by accident.

“For example, the company’s new joint venture with Equinor to merge the two firms’ UK fossil fuel assets highlights just how intertwined big energy profits, tax arrangements and supply of gas from a depleting North Sea reserve have become.

“But as debate continues over the future of the Energy Profits Levy, the contrast between firms locking in billions of profit and households struggling with high energy bills is stark. Ministers must ensure the system is on the side of the consumers, not the energy giants that have generated more than £125 billion in UK profits since 2020, even as millions live in cold, damp homes.”