Changes to energy price cap

Energy prices are changing

Ofgem, the energy industry regulator, has announced that from Tuesday 1 July 2025, the price cap on gas and electricity prices will fall by 7%. This means that the typical household that pays by direct debit will see their average annual bill fall to £1,720 a year for gas and electricity. This is down from £1,849 from April and is the first drop in a year.

Despite the drop, the energy price cap is still higher than it was three years ago, at the time of Russia's invasion of Ukraine. It's important to remember that the price cap doesn't limit your total bill and you could face higher bills if you use more energy than the typical household.

What is the energy price cap?

The energy price cap sets the maximum amount that suppliers can charge for each unit of gas and electricity. 

From Tuesday 1 July 2025, gas prices will be capped at 6.33p per kilowatt hour (kWh) and electricity at 25.7p per kWh – down from 6.99p and 27.03p now. 

Standing charges - a fixed daily charge that covers the cost of connecting to the supply - are dropping from 32.67p to 29.82p for gas, and from 53.8p to 51.37p for electricity. Standing charges vary by region.

What does this mean for you?

The price cap doesn’t limit your total bill. How much you actually pay will depend on: 

• how much energy your household uses;
• how you pay your bill; and
• the type of meter you have. 

So if you need to use more energy – because you have a large family, or you have a health condition that means you need to have a warmer home, you might need to pay even more. 

Easy ways to save energy

Not all energy-saving measures are expensive and time consuming. There’s lots of easy and inexpensive ways you can cut your energy use and save money - discover our top tips.
 

Get help

If you’re worried about your energy bills, we’re here to help – call us on 0808 808 2282  or, if you’d rather speak to someone over email or WhatsApp, get in touch via our website contact form today.

Our friendly advisors are on hand to give you free, expert and impartial advice about ways you can reduce your bills and make your home warmer. They can explore any funding available and offer specialist advice if you need additional support.

If you need help, don't delay - get in touch today. If you're struggling to pay your bills, help is available - find out where to turn for financial support.