Looking to stay ahead of energy price cap changes? We can help.
The energy price cap is reviewed every three months to make sure it’s in line with the cost that energy suppliers are charged for providing the service.
Read on to find out what this means for you.
What are energy price cap changes?
This is what changes:
- The maximum charge for each unit of gas or electricity you use while on a default (the supplier’s default rate) or standard variable tariff (when your rate can increase or decrease).
- The ceiling price, which is the maximum price set by the government.
When does the energy price cap change?
The energy regulator, Ofgem, reviews and updates the cap throughout the year. It does this on the first of these months:
- January
- April
- July
- October
What are the new energy prices?
In May 2025, Ofgem announced changes to the energy price cap between July and September.
The new cap for July 2025 sees a 7% decrease from the previous cap, which means it’ll cost a typical household £1,720 a year.
That means energy bills will be reduced by £11 a month compared to rates prior.
While July 2025’s cap is lower than its peak in 2023, Ofgem reports that it’s still 10% higher than what it was for the same period in 2024, when it was £1,568.
Energy price cap unit rates
To better understand energy costs, it also helps to review the unit rates that are capped by Ofgem.
Electricity: For those on a variable tariff and paying by Direct Debit, the average cost from July until September is 25.73p per kilowatt hour (kWh). This is combined with a daily standing charge of 51.37p.
Gas: The cost for gas per kWh is 6.33p if paying by Direct Debit on a variable tariff. The daily standing charge for gas is29.82p.
Will the energy price cap rise again?
It’s possible for it to rise again. Ofgem will review the prices again and will announce any changes (whether that’s up or down) on 1st October 2025.
MoneyHelper has lots of helpful advice if you do have money worries and need extra support.
What is energy debt?
Energy debt is a term used to describe payment arrears (overdue payments), or money owed to energy suppliers for electricity or gas. Energy debt has increased a lot recently because of rising utility prices. Lots of households are struggling to afford their bills.
In fact, at the end of 2024, Ofgem revealed that people who were late on their payments and didn’t have a repayment plan sorted owed on average:
- £1,617 for electricity
- £1,376 for gas
This was an annual increase of 31%, and a 66% increase compared to three years ago.
Since the start of 2025, these figures have increased again, and are now:
- £1,712 for electricity (+5.87% since 2024)
- £1,482 for gas (+7.70% since 2024)
What to do if you have energy debt
If you’re experiencing energy debt, we recommend contacting your supplier to tell them you’re struggling to pay.
They’ll be able to discuss your payment options, like repayment breaks and plans.
There are financial support schemes set by the UK government for low-income households, including grants, but not all households qualify for them. More on those later.
How to manage your money
It can be difficult to manage your costs, especially when energy bills keep on rising or potentially falling every time the cap changes.
There are a few things you could do to help manage your money:
Create a budget plan
Creating a budget plan is a great way to help manage your finances and spending. MoneyHelper has a free online budget planner you can use.
Your budget plan should factor in your monthly outgoings, including your utility bills, as well as any other one-off payments like car repairs or money you need for food and travel expenses.
A budget planner is a simple way of tracking your spending, so you’re not left short before your next payday.
Get support
If you’re worried about your financial situation, you can find lots of helpful resources and advice on the MoneyHelper website.
MoneyHelper offers access to a debt advice locator and other links to free tools for finding the right help.
You can also find guidance on dealing with the financial impact of the rising cost of living from the Financial Conduct Authority.
For mental health support, reach out to charities like Mind and Samaritans.
Our article on what to do if you’re in debt also includes some helpful guidance.
Improve energy efficiency
While energy costs can rise and fall, improving your home’s energy efficiency could help keep your gas and electricity bills down.
We know that sometimes investing in your home to make it more energy efficient can be expensive. But there are ways to keep the costs down – there are different grants and programmes available, like the government-backed Help to Heat scheme.
Some UK energy suppliers can also help improve your home’s energy efficiency directly. The Energy Company Obligation scheme helps energy providers to support households become more energy efficient – whether that’s by upgrading their boiler or improving the insulation in their homes. Get in touch with your supplier to see if they can help.
A home improvement loan might be an option to help fund any home improvements that help you to be more energy efficient. These could include installing solar panels, improving your insulation, or adding smart energy monitoring capabilities.
A home improvement loan is not right for everyone. If you're having financial worries and need advice about your debts, you can get free independent help and support from a range of organisations. If you're worried about how to start the conversation or if you're looking for more information, MoneyHelper has some guidance that may be useful.
