The news comes as part of a wider shake-up of costs following a government pledge to deliver an average £150 cut to household energy bills.
Latest industry forecasts indicate that Ofgem will reduce the energy price cap by £117 to £1,641 per year for a typical dual fuel household.
Chancellor Rachel Reeves said in November that savings would be achieved by scrapping the Energy Company Obligation (Eco) scheme, which was introduced by the previous Conservative government.
However, not all customers should expect a direct £150 discount, as actual savings will vary based on household size and energy usage.
British households set for lower energy bills
Ned Hammond, deputy director of customer policy at Energy UK, said: “At a time when many households are struggling with their bills, action taken by the Government to provide a considerable discount on energy bills is hugely welcome.
“While the saving will be £150 for the average household, it is important to note that the discount is applied to the unit rate.
“Therefore, households will experience significantly different savings depending on their energy consumption, some much higher and others substantially lower than £150.
“In addition, other moving parts, such as network charges and wholesale costs, mean energy bills will not necessarily fall in line with the saving provided.
“Indeed, the price cap is projected to drop by around £115 from April 1.”
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Much of the reduction is expected to come through a lower price per unit of electricity, and households are being advised to watch for updates from their suppliers following Ofgem’s formal announcement.
Cornwall Insight, an energy consultancy, estimates that the changes will reduce the cap by around £145 per year once VAT and pricing adjustments are included.
Some of the savings have been offset by higher charges related to the operation and maintenance of Britain’s energy networks.
Wholesale prices have risen slightly since December, with the cost of gas particularly volatile due to “geopolitical factors.”
Emily Seymour, energy editor at consumer group Which?, said: “Households can expect a significant cut to their energy bills in April, which will come as a relief to millions of people struggling with cost-of-living pressures.
“The bulk of this change is expected to be applied to your electricity price per unit, so your exact savings will depend on your usage.
“Look out for communications from your energy provider in the coming weeks to see how it will affect your bills.”
Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: “We know that energy bills can be confusing and trying to decide when to switch tariffs or change supplier is a big decision which can overwhelm people.
“As well as setting the price cap, Ofgem should play a greater role in ensuring that the tariffs reaching the market are fair and don’t discriminate against specific customer groups.
“Sadly, the responsibility currently falls to households to pay careful attention to any changes in their unit costs and standing charges.”
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He urged households to note the changes in unit costs and standing charges, rather than focus on the headline “average energy bill.”
Cornwall Insight said it expects the cap to remain steady throughout 2026, with only a small rise forecast in July.
This stability is due in part to wholesale costs remaining lower than when Ofgem set the January cap level.
However, it noted that the cost of gas is particularly volatile due to “geopolitical factors.”
