Average household energy bills are set to drop by 7% from April, following changes confirmed by regulator Ofgem. The reduction applies across England, Wales and Scotland, with savings affecting customers on both variable and fixed tariffs. For those on standard variable deals covered by the price cap, the decrease equates to roughly £10 a month for a typical dual-fuel household.

The revised cap will see the annual bill for an average home fall to £1,641, a reduction of £117 rather than the £150 initially suggested by ministers. Although some policy costs have been shifted away from bills, rising network maintenance expenses have offset part of the saving. Wholesale gas prices remain volatile, meaning longer-term forecasts are uncertain.

How much each household saves will depend on usage. The biggest reductions will be seen in electricity unit rates, benefiting homes with higher power consumption. Gas prices have dipped more modestly. Prepayment customers are expected to pay slightly less than those on direct debit, while households paying quarterly may face higher overall costs. Standing charges for electricity are rising slightly, while gas standing charges are falling.

Despite the cut, bills remain significantly higher than before the Ukraine conflict, and total consumer debt to suppliers exceeds £4bn. With water charges, council tax and other costs also increasing, experts are urging households to continue monitoring energy use and explore competitive tariffs where possible.