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You can find the current article at its original source at https://www.theguardian.com/money/2025/oct/01/energy-price-cap-great-britain-cut-bill-better-deal
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| What is the energy price cap for Great Britain, and can I cut my bill? | What is the energy price cap for Great Britain, and can I cut my bill? |
| (about 5 hours later) | |
| Regulator is to raise the government’s cap on bills on Wednesday – but it is possible to find a better deal | Regulator is to raise the government’s cap on bills on Wednesday – but it is possible to find a better deal |
| Britons preparing to ration energy as Ofgem price cap rises, says charity | Britons preparing to ration energy as Ofgem price cap rises, says charity |
| ‘It’s unsustainable’: homes in Great Britain brace for winter with soaring energy debts | ‘It’s unsustainable’: homes in Great Britain brace for winter with soaring energy debts |
| The energy price cap for Great Britain rises on Wednesday but if you are still on your provider’s standard tariff you might yet be able to reduce your energy bills this winter by shopping around. | The energy price cap for Great Britain rises on Wednesday but if you are still on your provider’s standard tariff you might yet be able to reduce your energy bills this winter by shopping around. |
| What is the price cap? | What is the price cap? |
| The price cap is set every quarter by Ofgem, the energy regulator for Great Britain, and dictates the maximum that suppliers can charge their 29 million household customers for each unit of gas and electricity and the daily standing charge. | The price cap is set every quarter by Ofgem, the energy regulator for Great Britain, and dictates the maximum that suppliers can charge their 29 million household customers for each unit of gas and electricity and the daily standing charge. |
| It was introduced in 2019 to protect consumers who did not shop around for their energy, ensuring they were not paying over the odds to subsidise other customers. However, after prices started to rise and smaller energy companies began to fail, it became the default tariff for providers, and now most households pay prices at the level of the cap. | It was introduced in 2019 to protect consumers who did not shop around for their energy, ensuring they were not paying over the odds to subsidise other customers. However, after prices started to rise and smaller energy companies began to fail, it became the default tariff for providers, and now most households pay prices at the level of the cap. |
| Although we refer to a cap, there are actually several caps as prices vary by region and according to how you pay. The cap is higher for standard credit customers – those who pay their bill in arrears – than it is for those who pay by direct debit or on a prepayment meter. | Although we refer to a cap, there are actually several caps as prices vary by region and according to how you pay. The cap is higher for standard credit customers – those who pay their bill in arrears – than it is for those who pay by direct debit or on a prepayment meter. |
| On 1 October the average price cap for households paying by direct debit increases by £35 to £1,755 for a typical annual dual-fuel bill. | On 1 October the average price cap for households paying by direct debit increases by £35 to £1,755 for a typical annual dual-fuel bill. |
| How much will I pay? | How much will I pay? |
| What you pay will depend on how much you use: the cap is based on typical usage but unless your consumption is identical to that of the average household used in Ofgem’s calculations your bill will be different. | What you pay will depend on how much you use: the cap is based on typical usage but unless your consumption is identical to that of the average household used in Ofgem’s calculations your bill will be different. |
| Under the new cap the price of electricity for customers who pay by direct debit is rising to 26.35p a kWh, while the price of gas is falling to 6.29p a kWh. | Under the new cap the price of electricity for customers who pay by direct debit is rising to 26.35p a kWh, while the price of gas is falling to 6.29p a kWh. |
| Energy providers have some flexibility within the cap but most tariffs will be similar to the figures laid out by Ofgem. | Energy providers have some flexibility within the cap but most tariffs will be similar to the figures laid out by Ofgem. |
| Standing charges are increasing for both energy types: the electricity standing charge is going up to 53.68p a day, and the standing charge for gas to 34.03p a day. | Standing charges are increasing for both energy types: the electricity standing charge is going up to 53.68p a day, and the standing charge for gas to 34.03p a day. |
| You will have to pay standing charges even if you do not use any energy. For electricity that is about £196 in charges you cannot avoid, however much you reduce your usage. For gas it is about £124 a year. | You will have to pay standing charges even if you do not use any energy. For electricity that is about £196 in charges you cannot avoid, however much you reduce your usage. For gas it is about £124 a year. |
| Do I have to pay the standard tariff? | Do I have to pay the standard tariff? |
| No. For a while wholesale energy prices were so high it was impossible for providers to offer deals below the cap – several went out of business because of their commitments – and the switching market all but closed. | |
| Now, however, you can get a better deal than the default. Most of the best offers are advertised as fixed tariffs – this means the price of the individual units and standing charges is set for the length of the cap. How much you spend on energy will still go up and down according to your usage. | Now, however, you can get a better deal than the default. Most of the best offers are advertised as fixed tariffs – this means the price of the individual units and standing charges is set for the length of the cap. How much you spend on energy will still go up and down according to your usage. |
| Will Owen, an energy expert at Uswitch.com, says there are currently 24 fixed deals available below the price cap level, and that the cheapest of those will save the average household £232 a year. | Will Owen, an energy expert at Uswitch.com, says there are currently 24 fixed deals available below the price cap level, and that the cheapest of those will save the average household £232 a year. |
| However, the very cheapest, according to MoneySuperMarket, is a variable deal from Home Energy. It offers a discount to the price cap, so goes up or down in line with it. | However, the very cheapest, according to MoneySuperMarket, is a variable deal from Home Energy. It offers a discount to the price cap, so goes up or down in line with it. |
| How do I find a better deal? | How do I find a better deal? |
| The easiest way is to use a price comparison website such as Uswitch, GoCompare and The Energy Shop. These sites typically obtain a lot of information from suppliers, so you need to provide very little to get a quote (you may be alarmed by how much data is on there). | The easiest way is to use a price comparison website such as Uswitch, GoCompare and The Energy Shop. These sites typically obtain a lot of information from suppliers, so you need to provide very little to get a quote (you may be alarmed by how much data is on there). |
| Once your usage details are in there and you have selected which energy you want to compare – probably both gas and electricity – and how you pay, the website will provide you with a list of the cheapest tariffs. | Once your usage details are in there and you have selected which energy you want to compare – probably both gas and electricity – and how you pay, the website will provide you with a list of the cheapest tariffs. |
| However, before you submit your details, make sure that you are asking the site to search the whole of the market. As a default, comparison sites typically show only the deals from providers that pay them commission when you switch. A list of all offers should be available – look out for filters that let you choose to see everything. | However, before you submit your details, make sure that you are asking the site to search the whole of the market. As a default, comparison sites typically show only the deals from providers that pay them commission when you switch. A list of all offers should be available – look out for filters that let you choose to see everything. |
| You will see the price for using the same amount of energy as you do now, what type of deal it is – fixed or variable – and how long it lasts. By fixed, it means that the cost of the unit of gas or electricity will stay the same, so your bills will still go up and down as your usage varies. | You will see the price for using the same amount of energy as you do now, what type of deal it is – fixed or variable – and how long it lasts. By fixed, it means that the cost of the unit of gas or electricity will stay the same, so your bills will still go up and down as your usage varies. |
| You will also be shown if there are exit fees. These are what you will have to pay if you want to move again before the end of the deal, and there is usually one for gas and one for electricity. Some are just £25 each, but some are £100 each. | You will also be shown if there are exit fees. These are what you will have to pay if you want to move again before the end of the deal, and there is usually one for gas and one for electricity. Some are just £25 each, but some are £100 each. |
| Who offers the best deals? | Who offers the best deals? |
| Home Energy’s variable rate deal appears to be the cheapest available. The cost for typical use is now equivalent to £1,492.30 a year but that is subject to change each quarter. It has no exit fees. | Home Energy’s variable rate deal appears to be the cheapest available. The cost for typical use is now equivalent to £1,492.30 a year but that is subject to change each quarter. It has no exit fees. |
| The cheapest fixed deal on the market is offered by Outfox Energy and is priced at £1,523 a year for the average household, according to Uswitch’s analysis of the market. | The cheapest fixed deal on the market is offered by Outfox Energy and is priced at £1,523 a year for the average household, according to Uswitch’s analysis of the market. |
| The deal, which you have to apply directly to Outfox the Market for, is called “Outfox the Price Cap – Oct 2025 – 12M v7.0” and is fixed for a year. Exit fees if you want to switch again in that time are £75 each for gas and electricity. | The deal, which you have to apply directly to Outfox the Market for, is called “Outfox the Price Cap – Oct 2025 – 12M v7.0” and is fixed for a year. Exit fees if you want to switch again in that time are £75 each for gas and electricity. |
| The company has a two-year equivalent with an average bill of £1,525. Exit fees are higher – £125 for each fuel – so you need to think about what you think will happen to prices before you lock in. Its 15-month option is third on Uswitch’s best-buy list. | The company has a two-year equivalent with an average bill of £1,525. Exit fees are higher – £125 for each fuel – so you need to think about what you think will happen to prices before you lock in. Its 15-month option is third on Uswitch’s best-buy list. |
| After that are deals from Fuse Energy, which you can find direct and on some comparison websites. Sainsbury’s, EDF and So Energy have tariffs that will save you at least £79 against the price cap. | After that are deals from Fuse Energy, which you can find direct and on some comparison websites. Sainsbury’s, EDF and So Energy have tariffs that will save you at least £79 against the price cap. |
| Anything else I should know? | Anything else I should know? |
| If you are on the default tariff, you should not face an exit fee to move. If you have switched recently, you should check that you will not face a penalty or, if you will, that the savings more than offset it. | If you are on the default tariff, you should not face an exit fee to move. If you have switched recently, you should check that you will not face a penalty or, if you will, that the savings more than offset it. |
| If you are staying put, make sure you are not paying over the odds for what you have used by submitting a meter reading this week. | If you are staying put, make sure you are not paying over the odds for what you have used by submitting a meter reading this week. |
| This article was amended on 1 October 2025. An earlier version said: “For a while the cap was so high it was impossible for providers to offer deals below it.” In fact, that should have said that wholesale energy prices were so high that it was impossible for providers to offer deals below the cap. |