Millions of households across Great Britain could still cut their energy bills by more than £200 a year by switching tariffs, even as the regulator prepares to lower the price cap in April. Consumer experts say those on default deals should not assume the cap offers the best value, as cheaper fixed-rate deals remain widely available.
The advice comes as families continue to feel the impact of higher living costs, with energy remaining one of the largest household expenses.
Ofgem price cap to fall by 7% from April
Energy regulator Ofgem confirmed that the price cap will fall by 7% from 1 April. The cap limits how much suppliers can charge per unit of gas and electricity, as well as daily standing charges, for customers on standard variable tariffs.
The change will reduce the average annual dual-fuel bill for a typical household from £1,758 to £1,641 — a saving of £117.
This time, the adjustment will affect all households, regardless of tariff, because the Government is removing certain green levies from bills.
The price cap does not limit total bills, however, as the final amount depends on how much energy a household uses.
Fixed deals remain significantly cheaper
Despite the reduction, fixed-rate deals are still undercutting the cap by a considerable margin.
Martin Lewis, founder of MoneySavingExpert, said now was “a pretty good time” to consider switching, even though predicting the perfect moment is impossible.
He said the cheapest fixed deals currently available are about 14% cheaper than the existing cap, adding:
“You’re paying too much if you’re on it. If you can get off it, get off it.”
Lewis expects fixed tariffs to fall by around 7% to 9% after April in line with the cap, meaning the gap between fixed deals and the cap is likely to remain.
Analysts believe energy prices will broadly stabilise around the new cap level for the rest of the year, suggesting the savings from switching could remain consistent.
Households warned not to “rest on their laurels”
Richard Neudegg, director of regulation at comparison site Uswitch, urged households not to assume they are already on the best deal.
“Households stuck on the price cap should not rest on their laurels,” he said.
“Every single household can expect to see an adjustment in their bills from April, regardless of which supplier they’re with or which tariff they’re on.
“But the real winners are households who are on, or get themselves on to, a cheap fixed tariff before April.”
He added that switching now could cut heating costs immediately while still allowing households to benefit from the April reductions.
This is particularly important during colder months, when heating accounts for a large share of energy use in British homes.
Best fixed deals currently on the market
At present, several fixed-rate tariffs offer substantial savings compared with the price cap.
According to Uswitch:
- Fuse Energy is offering a 13-month fixed deal costing £1,498 a year based on typical use — £260 less than January’s cap and £143 less than April’s level.
- Outfox Energy has a 12-month fix priced at £1,519 annually.
- EDF offers a price-cap tracker tariff, along with a £100 discount on standing charges over the first year.
Actual bills will vary depending on usage, property size and energy efficiency.
Energy costs remain a major household concern
Although prices have fallen from the record highs seen during the energy crisis, they remain well above pre-2021 levels. The price cap was introduced to protect consumers from excessive charges but does not always represent the cheapest option available.
With energy still accounting for a significant share of household spending, experts say regularly reviewing tariffs is essential.
Switching could deliver meaningful savings
The upcoming reduction in the Ofgem price cap will bring some relief to households, but it may not offer the best value. Experts say switching to a competitive fixed tariff could save households more than £200 a year, making it one of the most effective ways to cut energy costs in 2026.
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