Tag: gas

Changes to energy price cap between 1st October and 31 December 2025

Changes to the maximum amount energy suppliers can charge people on default tariffs for each unit of energy and the daily standing charge

Every 3 months Ofgem review and set a level for how much an energy supplier can charge for each unit of energy and daily standing charge, under the price cap.

From 1 October to 31 December 2025 the price for energy for a typical household who use electricity and gas and pay by Direct Debit will go up by 2% to £1,755 per year. However, compared to the start of 2023, this is £625 (26.3%) lower than when the energy crisis was at its peak.

For a typical household, their energy bills will increase by £2.93 a month or £35.14 per year. This is 2.2% per year higher than the price cap set for the same period last year, from 1 October to 31 December 2024 (£1,717).   But when adjusted for inflation, it is 0.9% lower than the same period in 2024.  Based on the current inflation rate, a typical household will pay £102 from October to December instead of £100 per month.

Costs included in the energy price cap

The level of the energy price cap is made up of different costs, for example the wholesale cost of gas and electricity, costs to supply energy on the network and VAT. These costs are split within the energy price cap between the unit rate and the standing charge.

We are consulting on some of these costs which could impact future energy prices. View all our latest consultations and call for inputs related to the price cap.

Read about typical household energy use and how the energy price cap is calculated on our Average gas and electricity use explained page.

View and compare 1 October to 31 December 2025  and 1 July to 30 September 2025 energy price cap standing charges and unit rates by region.

Learn more about the costs that make up the standing charge for electricity and gas.

You can also get and compare all the energy price cap (default tariff) levels.

Energy price cap rates 1 October to 31 December 2025

Electricity rates

If you are on a standard variable tariff (default tariff) and pay for your electricity by Direct Debit, you will pay on average 26.35 pence per kilowatt hour (kWh). The daily standing charge is 53.68 pence per day. This is based on the average across England, Scotland and Wales and includes VAT.

Gas rates

If you are on a standard variable tariff (default tariff) and pay for your gas by Direct Debit, you will pay on average 6.29 pence per kilowatt hour (kWh). The daily standing charge is 34.03 pence per day. This is based on the average across England, Scotland and Wales and includes VAT.

Why energy prices have gone up

There have been increases to parts of the costs of transporting energy in Great Britain (England, Scotland and Wales). Network operators are adjusting costs based on the level set by the National Electricity System Operator so that electricity supply is secure.

Other costs that go towards government schemes and essential support are also a factor for this increase.

Managing your energy bills and tariff

You are covered by the energy price cap if you are on a default tariff and pay for your electricity and gas by either:

  • standard credit (payment made when you get your electricity and gas bill)
  • Direct Debit
  • prepayment meter
  • Economy 7 (E7) meter

The actual amount you pay will depend on how much energy your household uses, where you live and the type of meter you have.

You could pay less for your energy by changing your energy tariff or payment type. Find out if you can change or fix your tariff and how to switch energy supplier.

Tell your energy supplier if you cannot pay your bills. They must help you if you ask. They could set up a repayment plan or provide you with emergency credit.

What we are doing to help customers

Consumers will have more choice and control in how they pay for their standing charges. Some suppliers are already offering these tariffs. See our update on creating a low or zero standing charge option. 

We are reviewing how we allocate costs, and the impact of investments and upgrading infrastructure on customers’ bills. This will help make sure that the costs recovered are fair to consumers and efficient. 

Next energy price cap review 

We review and set a level on how much an energy supplier can charge for each unit of energy including the standing charge every 3 months. The levels for the period 1 January 2026 to 31 March 2026 will be published by 25 November 2025.

Record gas prices drive up price cap by £139

Customers encouraged to contact supplier for support and switch to better deal if possible

  • Support available for customers struggling to pay bills or in vulnerable circumstances with additional help for those on prepayment meters
  • Energy suppliers sign up to industry commitment to reach out to those who most need help this winter
  • Customers can avoid the increase by shopping around or asking their supplier to put them on a better deal

The energy price cap will increase from 1 October for the 15 million customers it protects. Those on default tariffs paying by direct debit will see an increase of £139 from £1,138 to £1277. Prepayment customers will see an increase of £153 from £1,156 to £1309. 

This increase is driven by a rise of over 50% in energy costs over the last six months with gas prices hitting a record high as the world emerges from lockdown.

Surging global fossil fuel prices are already driving up inflation for consumers, making fixed rate energy tariffs not covered by the price cap, as well as petrol and diesel more expensive.

The price cap offers a safety net for customers who haven’t switched by making sure that suppliers only pass on legitimate costs.

Those on default tariffs are saving an estimated £75-£100 or £1 billion every year as a result.

Any customer in vulnerable circumstances or worried about paying their energy bill should contact their supplier to access the support available.

Customers may be eligible for extra help such as affordable debt repayment plans or payment breaks, emergency credit for prepayment meters and a £140 bill rebate under the Warm Home Discount.

Last week suppliers also signed up to an industry commitment to reach out to those who most need help this winter.

Customers can also shop around to save money before the increase takes effect on 1 October.

Those who don’t want to switch supplier or are unable to can ask their supplier to put them on a better deal.

Jonathan Brearley, chief executive of Ofgem, said: “Higher energy bills are never welcome and the timing and size of this increase will be particularly difficult for many families still struggling with the impact of the pandemic.

“The price cap means suppliers only pass on legitimate costs of supplying energy and cannot charge more than the level of the price cap, although they can charge less.  

“If you’re struggling to pay your bill you can get in touch with your supplier to access the help that’s available and if possible, shop around for a better deal.

“We have put tough rules in place to ensure suppliers treat customers who are struggling with bills fairly, and welcome their commitment to reach out to those who most need help this winter. Where help is not forthcoming, we will not hesitate to act.

“I appreciate this is extremely difficult news for many people, my commitment to customers is that Ofgem will continue to do everything we can to ensure they are protected this winter, especially those in vulnerable circumstances.”

Ofgem adjusts the price cap twice a year based on the latest estimated costs of supplying energy.

The biggest and most unpredictable factor is the wholesale cost of electricity and gas paid by suppliers and influenced by global markets. This accounts for roughly 40% of the overall price cap level.

Gas prices have risen to a record high in Europe due to a recovery in global demand and tighter supplies. This is increasing the cost of heating homes and pushing up electricity prices.

Last winter, the level of the cap fell by £84 after passing onto customers the savings from lower wholesale energy costs as countries went into lockdown and demand fell.

Letters: Essential utilities must be publicly owned

Dear Editor

Every one of us needs the supply of electricity and a lot of people also need gas for heating and cooking. We all need a supply of fresh water: yet all of these industries are owned by private companies, able to fix prices to maintain multi-million pounds of profit for investors.

This supply of electricity, gas and water is essential and is provided by workers in those industries.

Why, then, should such essential services be in the hands of private companies? These basic essential services should be publicly owned.

The control of these basic essential services cannot be left to private individuals and groups of investors. It is backward thinking; it is greedy and immoral however measured.

A. Delahoy

Silverknowes Gardens

Are your gas appliances safe?

Did you know that last week was Gas Safety Week? Me neither, there was quite a lot happening – but it’s not too late to check that your gas appliances are safe … 

gasResearch shows many homes have an unsafe gas appliance – risking fire or carbon monoxide poisoning, and firefighters are supporting the call to the public to help prevent tragedies by ensuring gas appliances are always properly maintained.

The Scottish Fire and Rescue Service (SFRS) has thrown its weight behind Gas Safety Week – the nationwide campaign aiming to raise awareness of gas safety issues.

Assistant Chief Officer Lewis Ramsay, director of prevention and protection, said: “The effects of a gas escape or carbon monoxide poisoning can be absolutely devastating.

“In the last year alone 343 people were injured and 10 people died in the UK as a result of gas related incidents.

“This follows previous information from Gas Safe Register which revealed that around one in five homes in Scotland has an unsafe gas appliance.

“It also found one in 20 would be considered immediately dangerous – meaning they could cause a fire, an explosion or a potentially fatal leak of toxic fumes.

“Carbon monoxide is a silent killer that you can’t see, taste or smell. It is the unnoticeable result of fuel not being properly burned and it can kill very, very quickly.

“Every home which has gas appliances should have carbon monoxide alarms fitted to ensure that in the event of a leak everyone gets warning of the danger.

“The threat of explosion or fire is real and the simple fact is anyone who uses gas heating or other appliances should ensure these are regularly serviced and properly maintained by a Gas Safe registered engineer.“

Gas Safety Week runs from 15 to 21 September and is coordinated by Gas Safe Register – the official list of engineers who are qualified to work legally and safely on gas appliances.

It advises the public is to have appliances checked every year, with a reminder service and information about specific local dangers available online at www.StayGasSafe.co.uk.

People should check for any of the warning signs an appliance may not be working correctly, such as a lazy yellow flame, black marks or stains around the appliance, or too much condensation in the room.

Knowing the six main symptoms of carbon monoxide poisoning – headaches, dizziness, nausea, breathlessness, collapse and loss of consciousness – could also save lives.

To find a Gas Safe registered engineer and for further gas safety advice visit www.GasSafeRegister.co.uk or call 0800 408 5500.