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Home News in English

Changes to energy price cap between 1 Oct and 31 Dec 2025

Melis Yahsi by Melis Yahsi
02/10/2025
in News in English
0
1 October 2025

Changes to the maximum amount energy suppliers can charge people on default tariffs for each unit of energy and the daily standing charge.

Every 3 months we review and set a level for how much an energy supplier can charge for each unit of energy and daily standing charge, under the price cap.

From 1 October to 31 December 2025 the price for energy for a typical household who use electricity and gas and pay by Direct Debit will go up by 2% to £1,755 per year. However, compared to the start of 2023, this is £625 (26.3%) lower than when the energy crisis was at its peak.

For a typical household, their energy bills will increase by £2.93 a month or £35.14 per year. This is 2.2% per year higher than the price cap set for the same period last year, from 1 October to 31 December 2024 (£1,717).   But when adjusted for inflation, it is 0.9% lower than the same period in 2024.  Based on the current inflation rate, a typical household will pay £102 from October to December instead of £100 per month.

Costs included in the energy price cap

The level of the energy price cap is made up of different costs, for example the wholesale cost of gas and electricity, costs to supply energy on the network and VAT. These costs are split within the energy price cap between the unit rate and the standing charge.

We are consulting on some of these costs which could impact future energy prices. View all our latest consultations and call for inputs related to the price cap.

Read about typical household energy use and how the energy price cap is calculated on our Average gas and electricity use explained page.

View and compare 1 October to 31 December 2025  and 1 July to 30 September 2025 energy price cap standing charges and unit rates by region.

Learn more about the costs that make up the standing charge for electricity and gas.

You can also get and compare all the energy price cap (default tariff) levels.

Energy price cap rates 1 October to 31 December 2025

Electricity rates

If you are on a standard variable tariff (default tariff) and pay for your electricity by Direct Debit, you will pay on average 26.35 pence per kilowatt hour (kWh). The daily standing charge is 53.68 pence per day. This is based on the average across England, Scotland and Wales and includes VAT.

Gas rates

If you are on a standard variable tariff (default tariff) and pay for your gas by Direct Debit, you will pay on average 6.29 pence per kilowatt hour (kWh). The daily standing charge is 34.03 pence per day. This is based on the average across England, Scotland and Wales and includes VAT.

Why energy prices have gone up

There have been increases to parts of the costs of transporting energy in Great Britain (England, Scotland and Wales). Network operators are adjusting costs based on the level set by the National Electricity System Operator so that electricity supply is secure.

Other costs that go towards government schemes and essential support are also a factor for this increase.

Managing your energy bills and tariff

You are covered by the energy price cap if you are on a default tariff and pay for your electricity and gas by either:

  • standard credit (payment made when you get your electricity and gas bill)
  • Direct Debit
  • prepayment meter
  • Economy 7 (E7) meter

The actual amount you pay will depend on how much energy your household uses, where you live and the type of meter you have.

You could pay less for your energy by changing your energy tariff or payment type. Find out if you can change or fix your tariff and how to switch energy supplier.

Tell your energy supplier if you cannot pay your bills. They must help you if you ask. They could set up a repayment plan or provide you with emergency credit.

What we are doing to help customers

Consumers will have more choice and control in how they pay for their standing charges. Some suppliers are already offering these tariffs. See our update on creating a low or zero standing charge option.

We are reviewing how we allocate costs, and the impact of investments and upgrading infrastructure on customers’ bills. This will help make sure that the costs recovered are fair to consumers and efficient.

Next energy price cap review

We review and set a level on how much an energy supplier can charge for each unit of energy including the standing charge every 3 months. The levels for the period 1 January 2026 to 31 March 2026 will be published by 25 November 2025.

 

OFGEM
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