Annual Energy Bills Set to Fall by Over £100 in April Following Government Policy Changes
Cornwall Insight forecasts that the typical annual energy bill for dual-fuel customers will drop by £138 in April due to the government's removal of certain policy costs. This reduction will see the typical annual bill decrease by 8% to approximately £1,620, which could be the lowest level since July 2024.
Between January and March, the expected typical annual dual-fuel bill is £1,758, slightly above the current price cap of £1,755. The key driver behind these bill changes is the removal of policy costs following budget measures.
Significant changes include the scrapping of the Energy Company Obligation (ECO) scheme and the removal of about 75% of renewables obligation costs from bills, with these costs instead being funded through general taxation. Chancellor Rachel Reeves has indicated that these levy cuts will reduce bills by about £150.
Additionally, costs associated with the National Grid are expected to increase less than initially forecast, with further declines anticipated in July according to Cornwall Insight's projections. The price cap announcement for April is scheduled for 25 February.
