Octopus Energy issues major update about bill increases in April 2026

The biggest energy supplier in the UK has announced it will slash bills from April 1 next year. Octopus Energy, which overtook British Gas as the largest electricity provider in late 2023, confirmed on December 12 it will pass on the changes from Rachel Reeves' latest Autumn Budget to customers - who will not have to do anything to claim the savings.

Octopus has become the first major electricity supplier to state that the reductions will be applied automatically to all customers, whether new or already existing, both on a varied and fixed tariff. The move comes as the Chancellor vowed to reduce high energy bills by scrapping "legacy costs" and green levies that have historically inflated electricity costs.

While wholesale prices have come down in recent months, standing charges have, on the other hand, increased, largely driven by the cost of policies like the Warm Homes scheme.

With her move, Ms Reeves hopes to bring down bills for millions of households.

The Budget's policy cuts are expected to reduce a typical yearly bill by around £134.

Octopus is now calling on its competitors to follow in its footsteps.

Greg Jackson, CEO and Founder of Octopus Energy, said: "Octopus has long called for cuts in policy costs to help bring bills down, so we are delighted to see the government taking action.

"These changes will bring a welcome relief to customers, and we'll pass them through on all of our tariffs as soon as they kick in, so no one misses out.

Octopus customers can rest easy - we'll do it all automatically. We hope other suppliers will follow our lead so everyone can benefit."

While Octopus customers will see less expensive bills from April onwards, households may still face a difficult winter, with regulator Ofgem announcing in November a surprise hike to the price cap.

This means that, from January 1 next year, the average household bill is set to rise to £1,758.