When does the new Ofgem price cap apply and how much is it?

The April–June cap is expected to be about £1,641, down roughly £117 from the current level. It applies from April for typical dual-fuel households on standard variable tariffs paying by direct debit. Actual costs will vary by usage, region, and standing charges on your specific tariff.

Who gets the £40 smart meter compensation and how is it paid?

£40 automatic payments apply when suppliers miss certain smart meter standards, such as delayed installations, missed appointments, or slow fault fixes. Payments should be made automatically as a bill credit or cheque. Check your account after the event. If missing, raise a complaint and escalate if needed.

How could the OVO Energy price cap change affect supplier margins?

Lower caps reduce revenue per customer and can compress margins if hedges were placed at higher prices. Added £40 smart meter compensation also increases service costs. Suppliers can offset with tighter procurement, efficient field operations, lower bad-debt, and improved self-serve channels that cut contact costs and complaints.

Should I switch to a fixed tariff now or stay on the variable?

Consider fixing only if unit rates and standing charges beat the expected cap, and exit fees are modest. If the fixed is higher, the standard variable may be better when the cap drops in April. Always compare total annual costs, not headlines, and review your usage profile.

Global Market Insights

OVO Energy February 25: Ofgem Price Cap Falls; £40 Smart Meter Payouts

ByDanny Kontos February 25, 2026February 25, 2026

The OVO Energy price cap is in focus as Ofgem is expected to cut the April–June cap by about £117 to £1,641. That points to lower UK energy bills for typical households. New rules also trigger automatic £40 payments for specific smart meter failures and delays. For suppliers like OVO, lower tariffs help retention but compress margins and raise service costs. We break down household savings, £40 payouts, and how these changes could influence supplier performance and customer experience this quarter.