Millions of households in the UK will see their annual energy bills drop by £117 from April. The cut comes after plans to reduce bills by £150 were partly offset by rising network costs and higher energy maintenance fees. The energy regulator Ofgem confirmed its quarterly price cap will fall by 7% for April to June, reducing the average combined gas and electricity bill to £1,641 a year for direct debit customers. This compares with £1,758 under the current January-March cap. The reduction follows last November’s budget, in which the government shifted some green energy costs from household bills into general taxation and scrapped a billpayer-funded energy efficiency program. While the move provides relief to many households, those on variable tariffs will see smaller savings than the £150 initially promised. Households with fixed-rate energy deals, which make up about 40% of the market, will benefit fully from the government’s interventions. These customers will see larger reductions as suppliers pass on the savings without adding rising grid costs. Variable-rate customers will experience smaller decreases, reflecting ongoing infrastructure expenses. Without the government’s intervention, energy bills would have risen for a fourth consecutive quarter. Even though wholesale energy prices have fallen, network upgrade costs and maintenance have kept overall bills high. Ofgem reported that network charges alone increased by £66 from the last cap. Despite the reduction, domestic energy costs remain about one-third higher than before Russia’s full-scale invasion of Ukraine triggered the European energy crisis. UK households continue to face elevated bills due to higher import costs for gas from the US and the Middle East, alongside expenses related to the country’s energy transition. Keir Starmer said his government is “pulling every lever to bear down on the cost of living and protect the pound in the pockets of working people.” Tim Jarvis, director general of markets at Ofgem, added that the main driver of the reduction was policy changes announced in the budget. Peter Smith, from the fuel poverty charity National Energy Action, cautioned that “any fall in sky-high energy bills is welcome, but the new level is still far from affordable. Those on the lowest incomes in the leakiest homes will face deep debt and struggle to stay warm.” Clare Moriarty, chief executive of Citizens Advice, also noted that for many households, high energy costs are no longer a temporary hardship but a long-term threat to financial stability. Electricity unit rates will drop by 10.9% to 24.67p per kilowatt hour, reflecting cuts to government levies supporting renewable energy and the warm home discount scheme. Gas rates will fall by 3.2% to 5.74p per kWh due to lower wholesale prices. Adjusted for inflation, the new cap is £231, or 12.3%, lower than the same period in 2025. Wholesale costs fell by 6% over the last three months. Craig Lowrey, principal consultant at Cornwall Energy, highlighted that the transition to cleaner energy will not be cost-free. He said bills are unlikely to drop by hundreds of pounds overnight, but long-term savings are possible if the UK continues its energy transition. The April reduction marks a welcome respite for many households struggling with high costs, though experts stress that energy bills remain a significant financial challenge for millions across the UK.