- Today Ofgem has announced the energy price cap for 1 April to 30 June 2026 will be £1,641, down from £1,738 in Q1
- Despite the fall, over £100 of the average annual bill will still go towards subsidies and policy costs, Ofgem’s own figures put this at £106 after today’s changes
- Earlier this week the CPS published ‘Power to the Markets’, a new paper which set out how Britain is being crippled by high energy prices
- With electricity demand projected to double by 2050, the need for cheap energy has never been greater. Yet decisions made by this Labour government risk driving bills higher, not lower
- Instead of allowing the power market to remain dominated and dictated by the state, Britain needs to shift to a lower-cost, subsidy-free future
CPS Energy and Environment Researcher Sean Ridley said:
‘Households will no doubt welcome the fall in the energy price cap, but all is definitely not what it seems.
‘Britons are still paying more for their energy than they did before Russia’s invasion of Ukraine – and nothing Labour has announced so far in government will deliver on Ed Miliband’s promise to save £300 off their bills. In particular, shifting the Renewables Obligation from bills to general taxation is a simple sleight of hand – it is British households who foot the bill either way.
‘The core problem is that Britain no longer has a real energy market – we have one that is fundamentally dictated by the state, as our latest CPS report shows.
‘For example, since bills cluster around the energy price cap, with few suppliers offering a cheaper deal, this is effectively the state setting prices. In fact, even after today’s changes, over £100 of the average bill will still go to subsidies for generation, insulating producers from competition and removing any incentive to bring costs down.’
ENDS
NOTES TO EDITORS
- Sean Ridley is Energy and Environment Researcher at the CPS
- ‘Power to the Markets’ was published earlier this week
- For further information and media requests, please contact Melisa Tourt on 07399 251110 or [email protected] or Emma Revell on 07931 698246 or [email protected]
- The Centre for Policy Studies is one of the oldest and most influential think tanks in Westminster. With a focus on taxation, economic growth, housing, immigration, and energy abundance, its goal is to develop policies that widen enterprise, ownership and opportunity
Date Added: Wednesday 25th February 2026
