{"id":344775,"date":"2025-12-31T14:22:09","date_gmt":"2025-12-31T14:22:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/344775\/"},"modified":"2025-12-31T14:22:09","modified_gmt":"2025-12-31T14:22:09","slug":"annual-energy-bill-to-fall-by-more-than-100-in-april-as-government-removes-policy-costs-money-news","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/344775\/","title":{"rendered":"Annual energy bill to fall by more than \u00a3100 in April as government removes policy costs | Money News"},"content":{"rendered":"<p>Annual energy bills are set to fall by \u00a3138 in April due to government changes, trusted forecasters have said. <\/p>\n<p>Initially, costs had been expected to rise when the next energy price cap is announced for the three months from April.<\/p>\n<p>But due to measures announced in the budget, research firm Cornwall Insight said an annual bill will drop 8% to \u00a31,620 for a typical dual\u2011fuel household.<\/p>\n<p>If the forecast proves correct, yearly bills will be at their lowest since July 2024 and households will experience the biggest price fall in two years.<\/p>\n<p>Policy costs are the key reason bills are rising from 1 January to 31 March in 2026.<\/p>\n<p>Despite a drop in wholesale oil and gas costs, from New Year&#8217;s Day energy will be slightly more expensive for bill payers than it had been. Nowadays, policy measures are the main determinants of bill falls or increases.<\/p>\n<p>Between January and March, the typical annual dual fuel bill will be \u00a31,758 &#8211; up from the current \u00a31,755 cap.<\/p>\n<p>The biggest contributor to bills is the cost of energy, followed by infrastructure charges.<\/p>\n<p>What&#8217;s changing?<\/p>\n<p>Following the budget, some charges that had been added to bills are being removed and instead funded through general taxation.<\/p>\n<p>Chancellor Rachel Reeves had said the government would <a href=\"https:\/\/news.sky.com\/story\/budget-2025-the-key-points-at-a-glance-13475533\" target=\"_blank\" rel=\"nofollow noopener\">reduce bills by \u00a3150<\/a> through cutting levies.<\/p>\n<p>        <img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/12\/skynews-budget-pre-budget_7092237.jpg\"  class=\"ui-video-player-poster-image\" alt=\"\" data-testid=\"video-player-poster-image\"\/><\/p>\n<p>    Share<\/p>\n<p>\n                &#8216;It&#8217;s either keep warm or eat&#8217;\n            <\/p>\n<p>The Energy Company Obligation (ECO) scheme, designed to tackle fuel poverty and help reduce carbon emissions, has been scrapped.<\/p>\n<p>The vast majority (75%) of renewables obligation costs are being removed from consumer energy bills and coming from the general tax pot.<\/p>\n<p>Read more on Sky News:<br \/><a href=\"https:\/\/news.sky.com\/story\/snowfall-expected-across-much-of-uk-as-new-warnings-issued-13489006\" target=\"_blank\" rel=\"nofollow noopener\">Snowfall expected across much of UK as new warnings issued<\/a><br \/><a href=\"https:\/\/news.sky.com\/story\/nutrition-key-in-new-alcohol-abuse-rehabilitation-scheme-to-fight-addiction-13484477\" target=\"_blank\" rel=\"nofollow noopener\">How a healthy diet is helping patients recover from alcohol abuse<\/a><\/p>\n<p>The anticipated rise in national grid costs is also slightly lower than initially thought.<\/p>\n<p>A further decline in bill prices in July is seen as likely by Cornwall Insights.<\/p>\n<p>How does the price cap work?<\/p>\n<p>The energy price cap is a limit on the amount energy providers can charge per unit of power. It&#8217;s set by the regulator Ofgem every three months and is based on wholesale energy prices and policy measures.<\/p>\n<p>     <a href=\"https:\/\/news.sky.com\/download-app\" target=\"blank\" data-tracking-label=\"ui-app-promo-download-link\" class=\"ui-app-promo sdc-article-widget\" data-type=\"\" data-component-name=\"ui-app-promo\" data-testid=\"app-promo\" rel=\"nofollow noopener\"><\/p>\n<p>    <\/a><\/p>\n<p>The official energy price cap announcement for April will be made on 25 February.<\/p>\n","protected":false},"excerpt":{"rendered":"Annual energy bills are set to fall by \u00a3138 in April due to government changes, trusted forecasters have&hellip;\n","protected":false},"author":2,"featured_media":234676,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-344775","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/344775","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=344775"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/344775\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/234676"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=344775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=344775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=344775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}