Government levy policy changes
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 has reduced some of these levy costs from 1 April 2026. These savings are passed on to customers through their gas and electricity unit rates.
Actual savings will vary based on your tariff and energy use. 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 changed on 1 April. They’re determined by the latest energy price cap changes and government levy reductions.
Most customers had a price decrease. However some customers had an increase in their electricity prices due to the April price cap changes. Remember: your actual costs still depend on how much energy your home uses.
You don’t need to do anything - we’ll have updated your prices for you on 1 April. You’ll be able to see your new prices on your energy bills/statements and online account.
If you’re on a pay monthly fixed-rate tariff
Your prices decreased on 1 April in line with the levy reduction. Remember: your actual costs still depend on how much energy your home uses.
You don’t need to do anything - we’ll have updated your prices for you on 1 April. You’ll be able to see your new prices on your energy bills/statements and online account.
If you Pay As You Go
Your prices changed on 1 April. They’re determined by the latest energy price cap changes and government levy reductions.
Most customers had a price decrease. However some customers had an increase in their electricity prices due the April price cap changes. Remember: your actual costs still depend on how much energy your home uses.
If you have a smart meter your prices will have updated automatically on 1 April
If you have a traditional meter your prices will have updated when you topped up from 1 April
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, totalling over £15 million. You can find out more and apply online.
If you’re worried about your energy bills, please contact our team – we can help.
Priority Services Register
We can offer free practical support and extra services if you need it – if you’re unwell, you have a disability, or a medical condition.
Register for priority services
Questions and answers
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.
Do I need to do anything to get the discount?
Pay monthly customers
Your prices will have updated automatically on 1 April. You don’t need to do anything.
Pay As You Go customers
If you have a smart meter your prices will have updated automatically on 1 April
If you have a traditional meter your prices will have updated when you topped up from 1 April
Why are my prices increasing?
Some customers on our variable-rate tariff could see an increase in their electricity prices. This is because the price cap also changed on 1 April. Your new prices will have taken into account both the price cap and the levy reduction.
Find out more about the price cap
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 was applied to all fixed-rate and variable-rate tariffs from 1 April. So if you switch to a different tariff the discount will already be applied.