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Energy News
Government Plans £150 Energy Bill Reduction
The government has announced plans to cut around £150 from the average household energy bill by removing several green levies and charges. The change is due from April 2026 and is designed to ease pressure on living costs. Ministers say the reforms will shift more policy costs into general taxation while keeping investment in cleaner energy on track. Lower-income households are expected to benefit the most, with some seeing bigger reductions.
Our Thoughts:
The cut will not directly affect business tariffs, but it shows a renewed focus on affordability and market stability. Any move that supports households also helps consumer-facing sectors, and shifting levies off bills could influence future policy for commercial customers too. It is a small step, but it signals the direction of travel as the UK tries to balance costs with long-term green investment.
January 2026 Price Cap to Rise Slightly Ofgem has announced a small increase to the household energy price cap from January 2026. Bills will rise by around 0.2 percent, taking the typical dual-fuel bill to roughly £1,758 a year, which is around 28p more per month. The change comes despite falling wholesale prices, with Ofgem citing higher policy costs, investment in new nuclear projects and rising network and operating expenses.
Our Thoughts:
The rise is minimal but shows how structural costs continue to shape prices even when wholesale markets ease. For businesses, it reinforces the gap between wholesale trends and final bills. Stable long-term investment remains essential, but these pressures highlight why monitoring policy and network changes is just as important as tracking market prices.
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