Energy prices are shifting

Your energy bill has been reduced since 1 April following action taken by the UK Government in the 2025 Budget. You can find more information at gov.uk/your-energy-bill.

‍In the Autumn Budget, the government announced that some policy costs funded through household energy bills will be reduced from 1 April 2026. A significant proportion of energy bills are made up of ‘non-wholesale costs', including network costs, operating costs and policy costs, all of which support the running of the energy system.

From 1 April, some policy costs have been removed from customer bills, including 75% of the cost of the Renewables Obligation (RO), which will instead be funded by general taxation, and the Energy Company Obligation (ECO) insulation programme, which has come to an end.

We’ve passed on these savings directly – you can see the reduction in your rates in your online account and on your energy bills from 1 April.

“We're really happy to be passing savings on to So Energy customers, particularly at a time when there's a lot of uncertainty around the cost of energy. We've updated all our customers' accounts with their new rates, whether they're on a fixed or variable tariff, so they don't have to do a thing."

Andrew Barrowcliff, So Energy Pricing Manager.

Wholesale energy prices have risen sharply because of the conflict in the Middle East affecting the flow of oil and gas. This didn’t affect the April price cap drop because it was based on wholesale prices from before the conflict started. But the next cap, set for July, is expected to go up because it’s based on what’s happening now.

If the conflict ends soon, wholesale energy prices could drop quickly. But if the situation continues, prices could stay high as countries compete to secure energy supplies and build up gas reserves for winter.

Wholesale prices are still high at the moment, so we’re not able to offer fixed tariffs below the price cap. We’re continually reviewing the situation to keep prices fair and competitive.

Things can change fast. We’ll keep you updated as the situation changes.