Ofgem has today confirmed what many market analysts had predicted: the Energy Price Cap will rise from 1st October 2025. The new cap has been set at approximately £1,755 per year for a typical dual-fuel household paying by Direct Debit. This represents a significant increase from the summer rates we have been paying, and will unfortunately add pressure to household budgets just as we head into the heating season.
Why is the price going up? Despite some stability in the energy market compared to previous years, global wholesale gas prices remain higher than historic averages. This is due to ongoing geopolitical tensions and competition for gas reserves. Because the UK still relies heavily on gas for both heating homes and generating electricity, these global price shifts are passed onto us, the consumers.
What does this mean for you? If you are on a Standard Variable Tariff (SVT)—which most households are—your unit rates for gas and electricity will increase. It is important to remember that the “cap” limits the price per unit, not your total bill. The figure of £1,755 is based on an “average” user. If you have a large family, live in a detached house, or have a draughty home, your bill could be much higher than this figure.
Take Action Now Now is the critical moment to prepare. If you are worried about affording this increase, please check if you are entitled to extra support. Millions of pounds in energy grants go unclaimed every year. From cavity wall insulation to solar panels, making your home more efficient is the only permanent way to protect yourself from rising caps. A more efficient home keeps the heat in, meaning you don’t have to run the boiler as often, shielding you from price hikes.
