Millions of British households are about to receive welcome relief on their energy bills as three major suppliers have confirmed significant price reductions starting April 1st.
What's Changing and When?
EDF, Octopus Energy and British Gas have all announced they will be cutting their standard variable tariffs in line with the new Ofgem price cap. The changes will automatically apply to customers on default tariffs, meaning no action is required to benefit from the savings.
How Much Will You Actually Save?
The average household can expect to see their annual energy bill drop by approximately £238, bringing the typical yearly cost down from £1,928 to around £1,690. This represents the lowest energy prices we've seen in two years, offering significant relief during the ongoing cost of living crisis.
Supplier-Specific Reductions
EDF has confirmed their prices will decrease for both existing variable tariff customers and those who recently fixed their contracts. Meanwhile, Octopus Energy and British Gas are implementing similar reductions, ensuring competitive pricing across the market.
Why Are Prices Falling Now?
The price cuts follow Ofgem's decision to lower the energy price cap in response to falling wholesale gas and electricity costs. This marks a positive shift for consumers who have endured historically high energy bills throughout 2022 and 2023.
What Should Customers Do?
Energy experts recommend that households:
- Take regular meter readings around April 1st to ensure accurate billing
- Review their current energy deal once the new prices take effect
- Consider whether fixed tariffs might offer better value as the market stabilises
- Look into energy efficiency measures to maximise savings
While the reductions provide much-needed financial breathing space, analysts caution that prices remain substantially higher than pre-crisis levels, and further market volatility remains possible.
