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The energy price cap will rise by 6.4% in April – should you fix a tariff?
Energy regulator Ofgem has announced that energy bills for those on price-capped tariffs will rise by 6.4% on 1 April. That equates to an increase of about £111 a year, or £9.25 a month, for a home using a typical amount of energy.
Daily electricity standing charges are decreasing from 61p per day to 54p per day, while gas standing prices will increase from 32p per day to 33p per day.
The price cap is not on your total bill but on each unit (kWh) of gas and electricity that you use. Households that use more than the average amount of gas and electricity will see a bigger increase in their monthly bills than those that use less.
The current price cap for January-March 2025 sees a home using a typical, medium amount of gas and electricity pay around £1,738 a year if they are on a variable tariff. The changes will see that figure rise to £1,849.
The price cap doesn't apply to you if you have signed up for a fixed energy deal.
That means now could be a good time to fix into a tariff. When we last checked on 27 February 2025, we found five deals that would save the typical, medium-use household more than £200 a year for the three months from 1 April. The cheapest would save £229 a year from April.
See our table of the latest cheapest energy deals in our guide to how to get the best energy deal.
Use our free, independent energy comparison service to compare gas and electricity prices and find the best provider for you
What will my energy cost in April 2025?
The new average rates for variable tariffs for those who pay by direct debit will be:
- Electricity unit rate: 27.03p per kWh (currently an average 24.86p)
- Electricity daily standing charge: 53.80p per day (currently an average 60.97p)
- Gas unit rate: 6.99p per kWh (currently an average 6.34p)
- Gas daily standing charge: 32.67p per day (currently an average 31.65p)
If you have a prepayment meter, you pay the same standing charge as direct debit customers but slightly lower rates per kilowatt hour.
At the new rates, a typical household paying by monthly direct debit can expect to pay around £154 per month for gas and electricity used between April and June. The same ‘typical’ household currently pays £145 per month.
Those estimates are based on using a medium amount of energy. The energy regulator Ofgem (which sets the price cap) defines this as 11,500kWh of gas and 2,700kWh of electricity.
You'll pay a different amount if you use more or less than this medium. Below, we've compared the annual energy costs of example households using low, medium and high amounts of energy, paying current rates and the rates that begin on 1 April 2025.
| Fuel type | Low user | Medium user | High user |
| Current electricity rate (24.86p per kWh) | £447 | £671 | £1,019 |
| New electricity rate (27.03p per kWh) | £487 | £730 | £1,108 |
| Current electricity standing charge (60.97p per day) | £222 | £222 | £222 |
| New electricity standing charge (53.80p per day) | £196 | £196 | £196 |
| Current gas rate (6.34p per kWh) | £476 | £729 | £1,078 |
| New gas rate (6.99p per kWh) | £524 | £804 | £1,188 |
| Current gas standing charge (31.65p per day) | £116 | £116 | £116 |
Based on Ofgem's typical domestic consumption values for a low user (7,500kWh gas and 1,800kWh electricity), medium user (11,500kWh gas and 2,700kWh electricity) and high user (17,000kWh gas and 4,100kWh electricity).
The actual prices you pay for your energy will vary by region and by how you pay. Different suppliers may split out their unit rates and standing charges differently.
Your energy supplier should contact you to let you know your new prices before it starts changing them.
The price cap doesn't apply if you live in Northern Ireland.
If you have a prepayment meter, your unit rates will be slightly lower than those who pay by direct debit, though your standing charges will be the same.
Why is the energy price cap going up?
Historically, energy prices have tended to fall in spring and early summer as temperatures rise and energy usage drops.
But this year, an unusually cold winter with a lack of wind across Europe meant that many countries had to rely on more gas than expected. As a result, gas storage levels have dropped, which has caused prices to rise.
Jonathan Brearley, CEO of Ofgem, said: 'Our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills, which is why it’s more important than ever that we’re driving forward investment in a cleaner, homegrown system.'
Ofgem also said that while a recent spike in wholesale prices is the main driver of April's price rise, accounting for around 78% of the total increase, an increase in policy costs and associated inflationary pressures make up the remaining 22%.
Should I fix my energy prices?
Around 11 million households are currently on a fixed deal and won’t be affected by the change in the price cap. Four million of those have switched in the last three months – the most since the energy crisis in 2021.
When we last checked on 27 February 2025, we found a choice of 20 tariffs that would cost less than the price cap that applies from January-March 2025 and over 30 that would cost less than the price cap that applies from April-June 2025. While switching to a fixed tariff now may not save you a lot in the short term, it will at least protect you from the price rise coming in April and any others that may come throughout the year.
See our table of the latest cheapest energy deals in our guide to how to get the best energy deal.
Bear in mind that predictions can change. Should energy prices drop while you're fixed into a deal, and you find yourself wanting to leave your contract early, some fixed deals will charge you hefty exit fees to drop out.
Before you switch, compare your monthly payments on a fixed deal with those you'd expect to be on the price-capped tariff, and make sure you're not agreeing to exit fees that would stop you being able to leave should things change.
Compare gas and electricity prices today: use our free, independent energy comparison service to find the best provider for you
What if you can't afford your energy bills?
If you're already struggling to afford your energy bills, there are several resources available to help you.
Reaching out to your supplier is the best way to get set up with some help. Most of the major energy providers have signed the EnergyUK Winter 2024 Commitment, which provides additional support for vulnerable customers through a series of financial measures and outreach programmes. The programme runs until 31 March 2025.
In addition to support from suppliers, there are government schemes designed to help those in need.
If you're not sure what you might be eligible for, head to our guide to getting help if you're struggling to pay your energy bill
