What is the energy price cap?
On 23rd May 2025, Ofgem announced its next quarterly update to the energy price cap. For the period 1st July to 30th September 2025, the energy price cap will go down by 7% to £1,720 for a typical dual fuel household1 paying by Direct Debit; a decrease of £129 over the course of the year and lowers the average bill by around £11 per month.
Understanding the energy price cap
How does the energy price cap work?
The energy price cap sets a limit on the amount that energy suppliers can charge customers on standard variable tariffs for gas and electricity.
While your energy bill can still go up or down depending on how much gas and electricity you use, the price per unit and standing charge will never be above the cap. If you are on a standard variable tariff, the price cap applies regardless of how you pay.
Why does the price cap change?
Ofgem, the energy regulator, is responsible for setting the price cap and once set, suppliers cannot charge more than the relevant cap per unit of gas and electricity. Ofgem base its calculations on the costs that energy suppliers face such as wholesale energy costs, the costs of building and maintaining the energy network, operating costs and environmental policy costs.
How often does it change?
The price cap is set every three months with any changes taking effect on the 1st January, 1st April, 1st July and 1st October each year.
Will the energy price cap affect you?
Standard variable tariffs or prepayment meters
If you are on one of our standard variable or default tariffs or are a PAYG customer with a prepayment meter, then the energy price cap will automatically apply. If your prices need to increase as a result, there’s no need to contact us. We’ll write to you by letter or email to let you know what your new prices will be before the change takes place.
Fixed price or flexi tariffs
If you are on one of our fixed price or flexi tariffs, the price cap does not apply for the duration of the tariff. Check a recent bill or your online energy account if you’re not sure what tariff you’re on.
Business customers
The price cap only applies to domestic customers.
Is additional support available?
Contact Us
If you need more support, we’re here to help. Please read more about the help and support available to you.
Our phone lines are very busy so if you have a question, please get in touch via webchat (Monday to Sunday, 7am to 11pm) – it’s one of the fastest ways to contact us.
1
A typical household, paying by Direct Debit, that uses 2,700 units (kWh) of electricity (single rate meter) and 11,500 units (kWh) of gas a year.
Last updated: 23 May 2025