What is happening to gas and electricity prices?

Typical household bills will fall by 7% when the new energy cap takes effect on 1 April 2026.

The EIA releases its May Short-Term Energy Outlook, reflecting ongoing Middle Eastern oil flow disruptions and plans to publish new energy security datasets.

The Consumer Price Index for All Urban Consumers increased by 0.6% in April 2026, with energy costs accounting for over forty percent of the monthly all-items increase.

Inflation rose to 3.8% year over year in April 2026, the highest since 2025, with energy costs accounting for nearly half of the monthly all-items increase.

Household energy bills in the UK are set to increase by over £200 annually from July, following a 13% rise in the energy price cap, influenced by the ongoing Iran conflict.

KPMG UK comments on Ofgem's announcement of a 7% reduction in the energy price cap to £1,641, effective from April 1, 2026, marking the lowest level since July 2024.

Ofgem announced that the energy price cap will fall by 7% from April 1, reducing the annual energy bill for a typical dual-fuel household in England, Scotland, and Wales from £1,758 to £1,641. This reduction is part of the government's initiative to remove certain levies and fund them through general taxation, aiming to alleviate the financial burden on households.

The Energy Saving Trust responded to Ofgem's confirmation that from 1 April to 30 June 2026, the energy price cap will decrease by nearly 7%, bringing annual energy bills for a typical dual-fuel household to £1,641. While this reduction is welcomed, the Trust emphasized that many households are still struggling with high living costs and that further support is needed to address fuel poverty effectively.