Autumn Budget 2025: Energy bills to be cut by £150 from April 2026

MattMattMattUK

EssexHebridean said:

I can't see these reductions being applied to the TOU tariffs - not least as it would be way too easily manipulatable by customers wouldn't it. 

I can imagine that there will be something, but likely a small reduction in the peak rate, I expect the off-peak or lower rates to stay the same as they are largely driven by wholesale pricing in those windows. I am on IOG, I would expect the charging rate to stay the same, but the peak rate might drop slightly, a penny or two off the standing charge, or a mix of both of those. 

michaels

MattMattMattUK said:

EssexHebridean said:

I can't see these reductions being applied to the TOU tariffs - not least as it would be way too easily manipulatable by customers wouldn't it. 

I can imagine that there will be something, but likely a small reduction in the peak rate, I expect the off-peak or lower rates to stay the same as they are largely driven by wholesale pricing in those windows. I am on IOG, I would expect the charging rate to stay the same, but the peak rate might drop slightly, a penny or two off the standing charge, or a mix of both of those. 

I guess it depends to what extent if any the price cap applies to EV type tariffs. My first guess is that all the rates and SC are competitive market considerations rather than being driven directly by the underlying costs.

MattMattMattUK

michaels said:

MattMattMattUK said:

EssexHebridean said:

I can't see these reductions being applied to the TOU tariffs - not least as it would be way too easily manipulatable by customers wouldn't it. 

I can imagine that there will be something, but likely a small reduction in the peak rate, I expect the off-peak or lower rates to stay the same as they are largely driven by wholesale pricing in those windows. I am on IOG, I would expect the charging rate to stay the same, but the peak rate might drop slightly, a penny or two off the standing charge, or a mix of both of those. 

I guess it depends to what extent if any the price cap applies to everyone type tariffs. My first guess is that all the rates and SC are competitive market consiserations rather than being driven by the underlying costs.

The price cap does not apply to them in any way, but the TOU tariffs do currently have a cost component that relates to the RO and ECO and with those going that would in theory reduce their costs, competitive market might bring that down, they might reduce them for the optics of it all, who knows. 

Scot_39

Miliband et al are desperate for the rates to kick in for all in April.

As per ML latest update with Milibands letter to suppliers.

https://www.moneysavingexpert.com/news/2025/12/energy-secretary-fixed-tariff-letter/


Of course if he really wanted to help the energy poor amongst us he wouldn't be imposing net zero and other policy changes ahead of winter- with the electric profile cap up £84 / 7.4% in Oct and Jan cap reviews - so just 3 months - ahead of other policy network increases likely in April.

And again if wanted to help over winter - they could have preannounced these levy and eco scheme changes and implemented for at least Jan cap onwards.

And its nonsense to quote tge £150 as an absolute - or even an average - in isolation.

When the same govt has made policy changes which are are and have been  for years further increasing costs in tge interim often dwarfing wholesale savings (policy line in Ofgem cap up iirc c£79 50% on df cap between Apr 24 to Jan 26 caps in 21m) - including on gas, but more clearly on electric with another £51 of tgat £84 total for 3m - added in Jan cap at pc2 tdcv. Smoke and mirrors - taking with one hand - giving with another.

Being cynical lowering bills in April - nothing to do with May 07 2026 elections of course.

MattMattMattUK

Scot_39 said:

As per ML latest update with Milibands letter to suppliers.
Of course if he really wanted to help 

If they really wanted to help they would reform the wholesale electricity market to a similar model to those used in nearly every other advanced nation in the world, but that would require actual effort and people with a level of intelligence, hence tinkering at the edges and ineffective proclamations in an attempt to get headlines. 

Scot_39 said:

Being cynical lowering bills in April - nothing to do with May 07 2026 elections of course.

Not a chance, there is no way they will not get obliterated at the next election, so they will only hold one at the last possible date to keep their seats for as long as possible. A relatively small but vocal group of people love to whinge about energy bills, but there are very few if any people who base their vote on it. 

Scot_39

The WM seats not up for voters in May - but Holyrood, Senedd and a share of English locals are..

MattMattMattUK

Scot_39 said:

The WM seats not up for voters in May - but Holyrood, Senedd and a share of English locals are..

If they had any sense they would accept them as lost and plan for the next GE, they cannot fix anything in the short term. 

gefnew

Now this comes along.
Energy investment of £28bn approved by regulator Ofgem - BBC News

JamesO

As someone on a fix I'm not understanding why Martin would want to set the precedent of people on fixes having their rates changed during the fix... that's the whole point of a fix. 

Eldi_Dos

JamesO said:

As someone on a fix I'm not understanding why Martin would want to set the precedent of people on fixes having their rates changed during the fix... that's the whole point of a fix. 

Tend to agree with you, would people be happy if their existing loan rates changed (upwards) whenever BoE moved rates.