Household energy prices to fall by 7% from April 1

The price most households pay for energy will fall by 7% from April 1, driven by the Government’s promised £150 cut to the average bill, Ofgem said.

The regulator’s price cap will drop from the current £1,758 to £1,641 – a reduction of around £10 a month for the average household using both electricity and gas.

Chancellor Rachel Reeves said in November that £150 would be cut from the average household bill from April by scrapping the Energy Company Obligation (Eco) scheme introduced by the Conservatives in government.

Tim Jarvis, director general of markets at Ofgem, said: “Today’s announcement will be welcome news for many households.

“Wholesale energy prices have fallen in recent months, and we’re investing in our network to safeguard the future energy system.

“The main driver of today’s reduction is the change to policy costs announced by the Chancellor in the budget.

“Our focus at Ofgem remains on bearing down on the costs within our control, and unlocking the investment needed to support the transition to a more stable energy system over the longer term.

“We’re also seeing encouraging signs of greater engagement and competition, with switching increasing by almost 20% year on year.”