How the Government levy policy changes impact you

There are various factors that make up your energy prices. These include wholesale energy prices, costs in maintaining pipes and meters, and meeting environmental and social policy obligations (levies). To help with energy costs, the government is reducing some of these levy costs from 1 April 2026. These savings will be passed on to customers through their gas and electricity unit rates. 

Actual savings will vary based on your tariff and energy use. We’ll contact you by 1 April to let you know how these changes will impact you. 

You can find out more on the government website.

What does this mean for me?

If you’re on a pay monthly variable-rate tariff

Your prices will change on 1 April. This will take into account the latest energy price cap changes and government levy reductions. 

Most customers will see a price decrease. However some customers will see an increase in their electricity prices due to the April price cap changes. We’ll send you an email or letter soon with your new estimated costs. Remember: your actual costs still depend on how much energy your home uses.

You don’t need to do anything - we’ll update your prices for you on 1 April. You’ll be able to see your new prices on your energy bills/statements and online account from the same date.

If you’re on a pay monthly fixed-rate tariff

Your prices will decrease on 1 April in line with the levy reduction. We’ll send you an email or letter soon with your new estimated costs. Remember: your actual costs still depend on how much energy your home uses.

You don’t need to do anything - we’ll update your prices for you on 1 April. You’ll be able to see your new prices on your energy bills/statements and online account from the same date. 

If you’re on Pay As You Go 

Your prices will change on 1 April. This will take into account the latest energy price cap changes and government levy reductions. 

Most customers will see a price decrease. However some customers will see an increase in their electricity prices due the April price cap changes. We’ll send you an email or letter soon with your new estimated costs. Remember: your actual costs still depend on how much energy your home uses;

• If you have a smart meter your prices will update automatically on 1 April, you won’t need to do anything
• If you have a traditional meter your prices will update when you top up from 1 April, so you will need to top up after 1 April

What else do I need to know?

Will I save £150 on my bills each year? 

£150 is what the average customer is estimated to save each year with the levy reduction. There are various factors that will determine your actual savings; such as your energy tariff, payment type and energy use. 

You can find out more about this on the government website.

Will my Direct Debit change because of this? 

Yes, it could change – but it depends on a few things. Your Direct Debit will be based on your new prices, as well as the energy your home’s used over the past year. If the Direct Debit looks too high or too low, we'll let you know. 

Will I still get the discount if I move to a different tariff? 

Yes. The levy reduction will apply to all fixed-rate and variable-rate tariffs from 1 April. So if you switch to a different tariff the discount will be applied to your prices automatically.

Could my prices increase? 

Some customers on our variable-rate tariff could see an increase in their electricity prices. This is because the price cap is also changing on 1 April. Your new prices will take into account both the price cap and the levy reduction. 

Find out more about the price cap.

If you need financial support, we’re here to help

Our OVO Extra Support includes financial and practical support. It offers customers extra help with bills, free home efficiency kits, or debt support. In the last 12 months, we helped over 5,000 homes, totaling over £15 million. You can find out more and apply online. 

We can also offer free practical support and extra services if you need it through our Priority Services Register– if you’re unwell, you have a disability, or a medical condition sign up here.