Energy price cap update – what’s changing this April?

There’s some welcome news on the way – and it’s not just that winter’s almost over. From 1st April 2026, Ofgem’s energy price cap is set to fall by 7%, offering a much-needed reduction in the cost of powering our homes.

For a typical dual-fuel household paying by Direct Debit, this could mean an annual saving of around £117, bringing the average bill down from £1,758 to roughly £1,641. With the latest bills shake-up, here’s some things to be aware of.

Why are energy prices falling?

The expected decrease is driven by two main factors:

1. Lower wholesale costs: A recent stabilisation in global gas markets has helped lower prices. This also has a knock-on effect for electricity prices.

2. Policy Changes: The government’s decision to move certain green levies from energy bills into general taxation, alongside the removal of some legacy efficiency scheme costs.

💡ivie insight: Remember, the price cap isn’t a cap on your total bill. It limits the amount suppliers can charge per unit of energy and the daily standing charge. But the more energy you use, the more you will still pay.

Stay in control with the ivie app

While prices are starting to trend downwards, energy costs remain significantly higher than they were a few years ago. Now, more than ever, tracking your regular energy use is the best way to keep your bills manageable.

The ivie app is your personal energy-saving assistant. By connecting directly to your smart meter, it provides:

• Energy tracking: Spot patterns and trends around when you’re using the most energy (especially when paired with the ivie Bud, for real-time energy visibility).

• Personalised insights: Discover the biggest energy hogs in your home, with your energy use broken up into different categories.

• Saving challenges: Complete tailored challenges to reduce your carbon footprint and your costs. We even go one step further and reward you with ivie points, which can help you win prizes!

💡 ivie advice: Update your tariff costs

To ensure the ivie app provides the most accurate projections and cost breakdowns, you should make sure that you update your tariff details whenever the price cap changes or you switch providers.

If your rates change on 1st April, follow these quick steps in the app:

1. Open the ivie app.

2. Tap the Profile icon (top right corner).

3. Navigate to the Energy options and choose Update your tariff.

4. Update your Unit Rates (p/kWh) and Daily Standing Charge based on your newest energy bill or supplier notification.

Keeping these figures up-to-date ensures that your predicted costs and your monthly insights reflect your current tariff, rather than the old prices.

Ready to take charge of your energy?

Don’t wait for your monthly bill to see the impact of April’s price change. Download the ivie app today and start making smarter energy decisions in real-time.