Energy regulator Ofgem has confirmed the price cap for 1st October to 31st December 2025 will rise by 2% to £1,755 a year for a typical household paying by Direct Debit. That's about £2.93 more per month than the current £1,720 level. As ever, it's a cap on unit rates and standing charges, not on your total bill.
Ofgem says the uptick is mainly down to policy and network costs, including the expanded Warm Home Discount and higher balancing and network charges. Standing charges will also rise on average (electricity up ~4% and gas up ~14%).
Consultancy firm Cornwall Insight thinks the cap should fall in January to roughly £1,712, reflecting softer wholesale prices. Still, it warns that the new policy costs (for example, the proposed RAB nuclear levy) could limit how far bills drop. Forecasts aren't promises, so treat them as guidance rather than a sure thing.
So, fix or stay variable? Suppose your supplier offers a fixed tariff that's clearly below the new cap (some deals have been under the cap in recent weeks). In that case, fixing can buy certainty through winter, especially if you're a heavier-than-average user.
If your offer is only level with, or just below £1,755, staying on the standard variable tariff could make sense if that January dip happens.
Always factor in exit fees, term length, and your own usage pattern; paying by Direct Debit typically costs less than standard credit (Ofgem estimates a saving of about £135.60 a year for those who switch payment method).
Make sure to confirm your current tariff and payment type with your supplier before October 1st. If you're struggling, remember suppliers must offer support like tailored repayment plans or emergency credit.
When you click on one of our links to our discount code or retailer pages, we may earn a commission if you make a purchase. Here's how it works.
