UK energy price cap predictions: what could happen next?

In recent weeks, there’s been renewed discussion about potential changes to energy prices and what this could mean for household bills.

Wholesale energy markets can move quickly, and while price movements are always worth keeping an eye on, they don’t necessarily lead to immediate changes for customers.

Here’s what we know right now – and more importantly, what it could mean for energy bills in the months ahead.

How the energy price cap works

Ofgem’s energy price cap sets a limit on the maximum unit rates and standing charges energy suppliers can charge customers on a Standard Variable Tariff (SVT). The cap is reviewed every three months and reflects the underlying costs of supplying energy, including wholesale prices.

Because the cap is set in advance, short-term changes in the wholesale markets don’t show on bills straight away.

What’s happening with energy bills in April 2026?

The price cap for the period 1st of April to 30th of June 2026 has already been set.

From the 1st of April 2026, prices for our SVT tariffs will go down by around £117 a year¹. This reflects measures introduced by the UK Government in the 2025 Autumn Budget to help reduce energy bills. You can find more information about your energy bill through your online account.

What you pay each month will still depend on how much energy you use, but this change means lower unit rates for most customers on the price cap from April.

Could prices change again later in the year?

If wholesale energy prices don’t come down, this could affect the next price cap period from July 2026 onwards. However, it’s important to stress that:

For now, the April price cap reduction is confirmed, and there’s no immediate impact on current bills beyond that.

What if I’m already on a fixed tariff?

If you’re on a fixed tariff, you’re protected from price changes.

In last year’s Autumn budget, the UK government announced changes designed to help reduce energy bills. For customers on one of our fixed tariffs, prices will go down by around £132² a year from the 1st of April, depending on when your tariff ends. You don’t need to do anything - these savings will automatically be applied to the unit rate for your tariff from the 1st of April 2026.

If you fixed your prices before recent market increases, it’s likely you’re on a lower rate than what’s currently available.

Why are new fixed tariffs more expensive right now?

When suppliers launch new fixed price tariffs, they buy the energy for the full duration of that tariff at the wholesale prices available at the time.

That means when wholesale costs are higher:

As of the 25th of March 2026, our fixed tariffs are around £300 higher than they were previously, reflecting higher underlying energy costs sine the current crisis began.

Should I fix my energy prices?

There’s no one-size-fits-all answer.

Right now, it’s unclear how long higher wholesale prices may last or how they could affect future price caps. If you already fixed at a lower rate, staying on your current tariff may make sense for now.

If you’re considering fixing, it’s worth weighing up:

Other ways we’re helping customers save

Tariffs aren’t the only way to manage energy costs.

More than half a million customers are already signed up to Power Saver³, which rewards customers for shifting electricity use away from peak times.

Power Saver customers can now access:

Looking ahead

At the moment, there’s no reliable forecast available for energy prices beyond October 2026, this is because predictions change frequently as new data arrives. While recent wholesale price movements are worth watching, they don’t automatically translate into higher bills — particularly in the short term. In the meantime, we’ll keep this page up-to-date with the latest developments.