UK's Ofgem cuts energy price cap by 7% for April–June
Change
UK's Ofgem cut the energy price cap by 7%, lowering the typical annual household bill by £117 to £1,641 for the period effective 1 April to 30 June 2026.
Why it matters
The reduced cap limits the maximum household tariffs that suppliers may charge for the April–June quarter, restricting their ability to pass on higher costs. Suppliers will face tighter revenue recovery and must modify pricing or cost structures to remain viable.
Implications
- • Retail energy suppliers must set household electricity and gas tariffs at or below the new price cap for the period starting 1 April 2026.
- • Retail energy suppliers must update customer billing systems and communications to reflect the reduced cap and revised typical-bill figures before the cap becomes effective.
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Source
Topics
Policy & Regulation Regulatory Actions Markets Economy Grid & Utilities Energy Transition