Ofgem Confirms Feed-in Tariff Rates for 2026/27 – What It Means for Your Energy Costs

On Monday 23 March, Ofgem confirmed the updated Feed-in Tariff (FiT) rates for the 2026/27 financial year, effective from 1 April 2026.

The tariffs have been increased by 3.4%, in line with the Consumer Price Index (CPI), reflecting the Government’s continued move away from Retail Price Index (RPI)-linked adjustments.

A Continued Shift to Lower Indexation

This change in methodology, switching from RPI to CPI, was introduced to reduce the overall cost of the FiT scheme. As CPI is typically lower than RPI, annual increases in FiT payments are now more subdued than in previous years.

For generators, this means a modest uplift in revenue. However, the more significant impact is being felt elsewhere in the market.

The Impact on Energy Import Customers

For businesses that import electricity (i.e. the vast majority of organisations), FiT costs are recovered through supplier charges and ultimately passed through on energy bills.

The key takeaway this year:

FiT-related charges are unlikely to rise as much as previously forecast.

With CPI at 3.4%, lower than historic RPI levels—this reduces upward pressure on non-commodity costs within your electricity bill. In practical terms, this may help to soften overall cost increases at a time when many businesses are still managing wider energy market volatility.

Why This Matters for Budgeting and Procurement

While FiT is just one component of your electricity costs, it forms part of the wider policy and levy landscape that can materially impact your total unit rate.

A lower-than-expected increase in FiT charges means:

More accurate (and potentially lower) cost forecasting for 2026/27
Slight easing of non-commodity cost pressures
Improved visibility when planning renewals and procurement strategies

Our View

At L&C Utility, we see this as a small but positive development for import customers. While it won’t dramatically reduce bills, it does reinforce a broader trend of Government seeking to control policy costs within the energy system.

As always, the detail sits beneath the headline. Understanding how these changes flow through supplier pricing, and how they interact with wholesale markets and other levies, is where real value can be unlocked.

Speak to Us

If you’d like to understand how FiT changes (and other non-commodity costs) are impacting your contracts or upcoming renewals, we’re here to help.

We work as an extension of your team—providing clear, proactive advice so you can make confident energy decisions.