Ofgem's energy price cap will fall by 6.1 per cent in April 2026 based on the the average of multiple forecasts, Martin Lewis has confirmed on X. The Money Saving Expert founder shared the updated prediction ahead of the energy regulator's cap rising by 0.2 per cent in January.
Under the energy price cap, Ofgem limits how much suppliers can charge you per unit for gas and electricity, as well as capping the standing charge which daily fee just for being connected. It should be noted this applies to households with average usage; those who use more energy pay more.
For October to December 2025, the dual-fuel energy bill will be capped at £1,755 per year for an average household paying by direct debit under the Ofgem regulation. This will jump to £1,758 per year in January, which is an annual increase of about £3 more annually for those of average usage.
However, Mr Lewis has revealed consumers should expect the Ofgem energy price cap to see dramatic drop of 6.1 per cent in April 2026, according to the average predictions from British Gas, EDF and Eon.
Martin Lewis claims the Ofgem energy price will fall by 6.1 per cent in April 2026
|GETTY / ITV / MARTIN LEWIS MONEY SHOW LIVE
Speaking to his followers, the financial journalist said: "The April energy Price Cap now predicted to fall 6.1 per cent, following the confirmed 0.2 per cent rise in January. This marks an improvement, as wholesale rates have dropped over the past week - though the broader picture remains more complex."
Notably, the host of The Martin Lewis Money Show Live claims reforms from Chancellor Rachel Reeves's Budget could slash energy bills by £150 for every household in Britain.
He added: "The original prediction of an April [price cap] rise wasn’t due to wholesale prices, but because additional network costs are expected to be added to bills and that is still the case).
"The Budget changed things: the ECO scheme is being scrapped and some other policy costs are moving to general taxation."
How will the Ofgem energy price cap change next year?
|MARTIN LEWIS / X
The Energy Company Obligation (ECO) is Government scheme that requires energy firms to pay for insulation and heating upgrades in the homes of Britons considered to be fuel poverty.
However, this will end in March 2026 with the Chancellor declaring it a "failed scheme" which is costing taxpayers an extra £1.7billion annually, with suppliers passing the costs to consumers.
According to Mr Lewis, families will get a typical £150 reduction in their energy costs, which comes to a seven-to-eight per cent cut applied to the unit rate.
"That shift turned the forecast from a net three per cent rise to a five per cent fall last week," he shared.
Ofgem has hiked the energy price cap in recent years
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Mr Lewis said: "This seven-to-eight per cent reduction is promised for all customers, not just those on the price cap. In theory, this should bring down the cost of fixes, both new and existing, though the exact mechanism is still unclear
"And this is all before a possible Standing Charge change: a consultation to take £40 off the standing charge and add it to the unit rate from April
He noted that that this will not change the overall prediction for the energy price cap's prediction overall.
According to Mr Lewis, he is in discussions with the Department for Energy about the mechanism for bringing down costs with the ECO scheme being axed.
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