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Energy price cap: What next for gas and electricity bills and can I fix? How much gas and electricity does a typical household use?
(about 2 months later)
Gas and electricity bills will be lower in the coming months, after a new energy price cap came into effect on 1 July. Typical gas and electricity bills will increase slightly on 1 October when a new energy price cap takes effect.
The drop more than reverses the increase which millions of households faced on 1 April when the price cap was last adjusted. It follows a drop in prices at the start of July, but there are concerns that bills remain unaffordable for some.
The energy price cap sets the maximum amount customers can be charged for each unit of energy, but actual bills depend on how much gas and electricity you use.The energy price cap sets the maximum amount customers can be charged for each unit of energy, but actual bills depend on how much gas and electricity you use.
What is the energy price cap and how is it changing?What is the energy price cap and how is it changing?
The energy price cap covers around 21 million households in England, Wales and Scotland and is set every three months, external by Ofgem. The energy price cap covers around 20 million households in England, Wales and Scotland and is set every three months, external by Ofgem.
It fixes the maximum price that can be charged for each unit of energy on a standard - or default - variable tariff for a typical dual-fuel household which pays by direct debit.It fixes the maximum price that can be charged for each unit of energy on a standard - or default - variable tariff for a typical dual-fuel household which pays by direct debit.
Between 1 April and 30 June 2025, gas prices were capped at 6.99p per kilowatt hour (kWh), and electricity at 27.03p per kWh. From 1 October, the annual bill for a dual-fuel direct debit household using a typical amount of energy will be £1,755, up £35 a year on the previous cap.
This meant the annual bill for a dual-fuel direct debit household using a typical amount of energy was £1,849 per year, an increase of £111 from the previous cap. Between 1 October and 31 December 2025, gas prices are capped at 6.29p per kilowatt hour (kWh) and electricity at 26.35p per kWh, external.
On 1 July, this fell £129 to £1,720.
Between 1 July and 30 September 2025, gas prices are capped at 6.33p per kilowatt hour (kWh) and electricity at 25.73p per kWh, external.
Those who pay their bills every three months by cash or cheque pay more, but those on prepayment meters pay a little less.
The cap does not apply in Northern Ireland, which has its own energy market.The cap does not apply in Northern Ireland, which has its own energy market.
What is a typical household?What is a typical household?
Your energy bill depends on the overall amount of gas and electricity you use, and how you pay for it.Your energy bill depends on the overall amount of gas and electricity you use, and how you pay for it.
The type of property you live in, how energy efficient it is, how many people live there and the weather all make a difference.The type of property you live in, how energy efficient it is, how many people live there and the weather all make a difference.
The Ofgem cap is based on a "typical household" using 11,500 kWh of gas and 2,700 kWh of electricity a year with a single bill for gas and electricity, settled by direct debit.The Ofgem cap is based on a "typical household" using 11,500 kWh of gas and 2,700 kWh of electricity a year with a single bill for gas and electricity, settled by direct debit.
The vast majority of people pay their bill this way to help spread payments across the year. Those who pay every three months by cash or cheque are charged more.The vast majority of people pay their bill this way to help spread payments across the year. Those who pay every three months by cash or cheque are charged more.
Should I take a meter reading when the energy cap changes?Should I take a meter reading when the energy cap changes?
Submitting a meter reading when the cap changes means you will not be charged for estimated usage at the wrong rate. Submitting a meter reading when the cap changes means you are not charged for estimated usage at the wrong rate.
This is especially important when prices go up.This is especially important when prices go up.
Customers with working smart meters do not need to submit a reading as their bill is calculated automatically.Customers with working smart meters do not need to submit a reading as their bill is calculated automatically.
What is happening to prepayment customers?What is happening to prepayment customers?
About four million households had prepayment meters in January 2025, according to Ofgem. About six million households have prepayment meters, according to Ofgem.
Between April and June, households on prepayment meters paid slightly less than those on direct debit, with a typical bill of £1,803, a rise of £113 from the previous quarter. Prepayment customers were previously charged more than those who settle their bill by direct debit, but now pay slightly less.
From 1 July, households on pre-payment meters will still pay slightly less than those on direct debit, with a typical annual bill of £1,672. From 1 October, the typical annual bill for prepayment customers will be £1,707.
Many pre-payment meters have been in place for years, but some were installed more recently after customers struggled to pay higher bills.Many pre-payment meters have been in place for years, but some were installed more recently after customers struggled to pay higher bills.
Rules introduced in November 2023, external mean suppliers must give customers more opportunity to clear their debts before switching them to a meter. They cannot be installed at all in certain households.Rules introduced in November 2023, external mean suppliers must give customers more opportunity to clear their debts before switching them to a meter. They cannot be installed at all in certain households.
Can I fix my energy prices?Can I fix my energy prices?
Fixed-price deals are not affected by the energy price cap, which changes every three months and can rise and fall.Fixed-price deals are not affected by the energy price cap, which changes every three months and can rise and fall.
They offer certainty for a set period - often a year, or longer - but if energy prices drop when you are on the deal, you could be stuck at a higher price. You may also have to pay a penalty to leave a fixed deal early. They offer certainty for a set period - often a year, or longer - but if energy prices drop when you are on the deal, you could be stuck at a higher price. You may also have to pay a penalty to leave a fixed deal early if you change your mind.
Ofgem, the energy regulator, says customers who want the security of knowing what their bill will be should consider moving to a fixed deal. However, it says they should make sure they understand all the costs.Ofgem, the energy regulator, says customers who want the security of knowing what their bill will be should consider moving to a fixed deal. However, it says they should make sure they understand all the costs.
Martin Lewis, founder of Money Saving Expert, recommends checking whole-of-market energy price comparison sites to help find the best deal.Martin Lewis, founder of Money Saving Expert, recommends checking whole-of-market energy price comparison sites to help find the best deal.
What are standing charges and how are they changing?What are standing charges and how are they changing?
Standing charges are a fixed daily fee to cover the costs of connecting to gas and electricity supplies. They vary slightly by region, external.Standing charges are a fixed daily fee to cover the costs of connecting to gas and electricity supplies. They vary slightly by region, external.
On 1 April, the average electricity standing charge fell from 60.97p to 53.8p but the average gas standing charge increased from 31.65p to 32.67p From October, standing charges will typically be 53.68p a day for electricity and 34.03p a day for gas.
Some customers in London and the North Wales and Mersey region saw larger increases.
From 1 July, standing charges will typically fall to 51.37p a day for electricity and 29.82p a day for gas.
Campaigners argue standing charges are unfair because they make up a bigger proportion of the bill of low energy users.Campaigners argue standing charges are unfair because they make up a bigger proportion of the bill of low energy users.
In response, Ofgem has said that energy firms must provide a choice of price-capped tariffs from winter 2025.In response, Ofgem has said that energy firms must provide a choice of price-capped tariffs from winter 2025.
One would have a standing charge and unit rate - as is the case now - and another no standing charge but a higher unit rate. However, the proposals have been criticised as being too complicated. One would have a standing charge and unit rate - as is the case now - and another no standing charge but a higher unit rate. However, the proposals have been criticised for being too complicated.
What help can I get with energy bills?What help can I get with energy bills?
The Household Support Fund, external, which was introduced in September 2021 to help vulnerable customers, has been extended until March 2026.The Household Support Fund, external, which was introduced in September 2021 to help vulnerable customers, has been extended until March 2026.
The Warm Home Discount scheme, external is being overhauled. From winter 2025, anyone on means-tested benefits will automatically see £150 taken off their bills, no matter what size of property they live in. The Warm Home Discount scheme, external is also being overhauled. From winter 2025, anyone on means-tested benefits will automatically see £150 taken off their bills, no matter what size of property they live in.
The government's Fuel Direct Scheme, external can help people to repay an energy debt directly from their benefit payments.The government's Fuel Direct Scheme, external can help people to repay an energy debt directly from their benefit payments.
In addition, suppliers must offer customers affordable payment plans or repayment holidays if they are struggling with bills.In addition, suppliers must offer customers affordable payment plans or repayment holidays if they are struggling with bills.
Most suppliers also offer hardship grants.Most suppliers also offer hardship grants.
Ofgem: Help with bills, externalOfgem: Help with bills, external
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