Overview
- Cornwall Insight expects Ofgem to lower the default tariff cap to £1,641 for April–June, a 7% drop and the lowest level since July 2024.
- The reduction is driven mainly by scrapping the Energy Company Obligation and moving 75% of Renewables Obligation costs to general taxation, worth about £145 before other adjustments.
- Rising network charges and slightly higher wholesale prices have offset part of the saving, with analysts forecasting a relatively steady 2026 and a small rise likely in July.
- Ofgem will confirm the official cap on 25 February, and the impact on individual bills will depend on household energy use and tariff type.
- Comparison services say some fixed deals now undercut the cap, with potential extra savings reported at up to 18% or roughly £917 for households that switch.