Household energy costs in Great Britain are set to fall by an average of £117 a year starting April. This comes after Chancellor Rachel Reeves announced in November’s budget that green subsidies will be removed from domestic energy bills. Instead, the government will fund these subsidies through general taxation. Cornwall Insight, a leading energy consultancy, predicts the energy price cap will drop to an average of £1,641 a year for a typical dual-fuel household from April. This is down from the current cap of £1,758 per year, despite a slight rise in energy market prices. Reeves’s move is expected to cut £145 annually from the average energy bill. However, costs for upgrading and maintaining energy networks will partly offset these savings. Craig Lowrey, principal consultant at Cornwall Insight, said, “The real test will be keeping those savings going. That won’t be easy as the UK continues to upgrade its networks and infrastructure. That investment is needed if we want an energy system that is more secure and resilient, after the consequences of exposure to global energy markets were made all too apparent in recent years. However, there needs to be an open conversation about the fact that such a transition will not be cost‑free.” Even with the expected drop, energy bills will remain about a third higher—around £425 more per year—compared to levels before Russia’s invasion of Ukraine triggered energy market disruptions across Europe. This rise is partly due to higher gas market prices, which reflect the cost of importing gas by tanker from the US and the Middle East. The UK’s energy transition costs also add to bills. Wholesale gas market costs now increase the price cap by about £170 a year compared to four years ago, while energy network costs have grown by about £143 annually during the same period. Lowrey emphasized transparency, saying, “The most important thing is transparency – being honest with people about why these changes are happening and how they fit into a longer-term plan. Bills aren’t going to drop by two or three hundred pounds overnight, but long-term progress is possible if we stick with the transition. Ultimately, a move to homegrown energy gives us a stronger chance of eventually achieving price stability while providing greater energy security in the process.”