Three energy firms confirm £150 bill cut for all customers, including those on fixed deals

Three major energy suppliers have confirmed they will pass on the full £150 annual saving announced in the Budget to all customers, including those on fixed price tariffs.

Consumer champion Martin Lewis has said E.ON has now joined Octopus Energy and British Gas in publicly committing to apply the £150 reduction automatically from 1 April 2026, regardless of whether customers are on standard variable tariffs or fixed deals.

The saving comes from government plans to move some policy costs off energy bills and into general taxation, alongside changes to the Energy Company Obligation scheme.

“This is the £150 a year off average bills announced in the Budget,” Martin Lewis said in a post on social media. “It will be delivered through a cut to the price cap, with electricity prices reduced by around 3.5p per kilowatt hour, roughly 13 percent, and gas prices reduced by about 0.35p per kilowatt hour, around 6 percent, assuming everything else stays the same.”

He added that the April price cap had been expected to rise, meaning the real world saving may be slightly smaller.

“The actual pounds in your pocket are likely to be less than £150 because the price cap was forecast to increase. Current predictions suggest around a 6 percent reduction in April compared with January,” he said.

E.ON, Octopus Energy and British Gas have all indicated the change will be applied by cutting unit rates for every customer on 1 April, including those locked into fixed deals.

Martin Lewis said the government was pushing all suppliers to follow the same approach.

“The key issue now is how this is implemented and making sure it is transparent,” he said. “A straight cut to everyone’s bills on 1 April is the cleanest and fairest way to do it.”

What is the £150 energy bill saving?

In last month’s Budget, the Chancellor announced plans to cut average household energy bills by £150 a year from April 2026 by removing certain levies from domestic energy bills.

Households on standard variable tariffs that follow the price cap will automatically receive the saving. Until now, there had been uncertainty about how customers on fixed deals would benefit.

The latest announcements provide clarity for millions of households, although many suppliers have yet to confirm their plans.

From April, average bills are expected to be around £150 lower than they would otherwise have been, though some of the benefit may be offset by other changes in the price cap.

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Consumers who switch from a price capped tariff to a fixed deal with one of the confirmed suppliers could see their bills fall twice. First, they may benefit immediately from lower rates compared with the current cap, and second, they will see another reduction in April when the £150 saving is applied automatically.

Pressure on remaining suppliers

Uswitch.com is urging other energy companies to clearly set out how and when they will pass on the savings to fixed deal customers.

Richard Neudegg, director of regulation at Uswitch.com, said the three firms deserved credit for removing uncertainty.

“British Gas, E.ON Next and Octopus Energy have made it clear that their fixed deal customers will automatically receive the Budget savings in April,” he said.

“This gives households confidence to lock in a fixed deal now. They can secure cheaper prices during the coldest months of winter and still benefit from another automatic cut in April without having to do anything.”

He added that clarity from other suppliers was urgently needed.

“Households can beat the price cap this winter, but confusion puts people off switching at exactly the time they use the most energy,” he said.

Richard Neudegg also urged customers on standard tariffs not to wait until April to save.

“There are deals available now that are around £233 below the January price cap, meaning real savings on heating bills through winter,” he said.

Energy suppliers confirmed to offer the £150 discount

The following providers have confirmed they will pass on the £150 saving to customers next year, according to MoneySavingExpert:

• 100Green
• British Gas
• Co-op Energy, via Octopus Energy
• E, also known as E Gas and Electricity
• Ecotricity
• E.ON Next
• EDF
• Home Energy
• Octopus Energy
• OVO
• Sainsbury’s Energy
• Utilita

Good Energy, Scottish Power and Utility Warehouse have said they intend to pass on the savings but are waiting for further details from the government before confirming how this will work.