Consumer champions are raising urgent concerns that millions of UK households risk missing out on the Chancellor's promised £150 annual energy bill reduction, as most suppliers have failed to explain how the savings will be passed on.
Which Suppliers Have Stepped Up?
To date, only a trio of major energy providers have publicly committed to automatically applying the Budget savings to customers on fixed energy tariffs when they take effect in April. These suppliers are British Gas, E.ON Next, and Octopus Energy.
Information from moneysavingexpert.com suggests a handful of other firms, including EDF, Co-op Energy, Ecotricity, and Ovo, intend to do the same. However, numerous other energy companies have not disclosed their plans, leaving their customers uncertain about whether they will benefit from the widely publicised government support.
The Risk of Confusion and Lost Savings
This warning comes from the comparison service Uswitch, which cautions that the current lack of transparency could prevent consumers from switching suppliers this winter, precisely when they could secure the best deals.
The £150 annual cut to average household energy costs was announced by the Chancellor in last November's Budget, to be achieved by removing specific levies from domestic bills. While customers on standard variable tariffs – which follow the price cap – will automatically see the reduction in their April 2026 bills, those on fixed deals have been in limbo for months.
A Chance for Double Savings
Uswitch has praised the three confirming suppliers for providing clarity. Crucially, households that switch to a fixed tariff with one of these providers could benefit twice. They could lock in lower rates for the winter months now, and then see a further price drop in April when the levy cuts are applied.
From April, energy bills are expected to be around £150 lower on average than they otherwise would have been, though some of this saving could be offset by changes to the energy price cap itself.
Richard Neudegg, director of regulation at Uswitch.com, stated: "British Gas, E.ON Next and Octopus Energy deserve credit for removing all confusion and confirming that their fixed deal customers will automatically receive the Budget savings in April."
"Households can now confidently sign up with these suppliers for a fixed deal that will effectively save them money twice. They can secure cheaper rates now during the coldest months of winter, and they'll see their prices drop even further in April without having to take any further action," he added.
Neudegg urged all other energy suppliers to publicly confirm their plans so more people can confidently shop for the cheapest energy this winter. He also advised: "If you're on a standard tariff, don't wait for April to save on your energy bills. There are deals available that are £233 below the January price cap, meaning you can save on your heating bills during the coldest months of the year."
