UK Energy Bills Hit Almost Two-Year Low Amid Green Cost Shakeup

UK energy bills will drop to the lowest in almost two years in April, after the government moved part of the cost of supporting renewable energy from household bills to general taxation.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — UK energy bills will drop to the lowest in almost two years in April, after the government moved part of the cost of supporting renewable energy from household bills to general taxation.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The energy price cap — the maximum suppliers can charge — will fall 7% to £1,641 ($2,219) from April 1, Ofgem said in a statement on Wednesday. Measures taken in November to reduce customers’ bills are a key driver of the decline in the price cap, which is reviewed every three months. One of Prime Minister Keir Starmer’s main election pledges was to lower bills for consumers hit by the energy crisis a few years ago that fueled a broader cost-of-living problem. While ministers say that accelerating renewables under a 2030 clean energy plan will curb costs over time, the more immediate cut reflects fiscal changes rather than structural shifts in the energy market.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Chancellor of the Exchequer Rachel Reeves’ November budget shifted 75% of the cost that energy suppliers pay for renewable electricity certificates from customers’ bills to general taxes. She said at the time that bill charges that fund energy-efficiency upgrades for fuel-poor households would be removed.Consultancy Cornwall Insight Ltd. last week said that higher grid and network costs — needed to integrate renewable supplies — have offset some of the bill savings from the policy changes. It added that the government’s target of cutting bills by £300 by the end of the decade remains uncertain, amid volatile gas prices and costs of additional infrastructure investment.Wholesale front-month UK gas prices have fallen about 5% over the past three months, while power prices have dropped roughly 9%.April’s price cap will be the lowest since July 2024. Cornwall last week said a small increase is expected in July, but that the price cap should remain fairly steady through the year.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.