The energy price cap will rise by 2% in October – is it worth fixing your tariff now?
Ofgem, the energy regulator, has announced today that energy bills for those on price-capped energy tariffs will rise by 2% on 1 October. This means that, from that date, bills for homes using a typical, medium amount of energy will be around £1,755 a year, or £146 a month.
This is an increase from the current rate for medium-use homes of around £1,720 a year, or £143 a month. The new rates will see households on price-capped tariffs paying £35 a year more than they do at the moment.
The price cap is not an overall cap on total bills, but rather a cap on the amount that suppliers can charge per unit of energy. Households that use more than the average amount of gas and electricity will end up paying more than the estimates, while houses that use less will pay less.
Use our free, independent energy comparison service to compare gas and electricity prices and find the best provider for you
Who does the energy price cap affect?
Changes to the energy price cap will affect the cost of energy for households who are on:
- Standard variable tariffs (SVTs). These can also be known as standard, default, rolling, flexible, or out-of-contract tariffs. Rates for these tariffs often change directly in line with the energy price cap.
- Tracker tariffs. A handful of suppliers offer this type of tariff, which guarantees a fixed discount on the price cap, regardless of how it changes. A discount of up to £50 a year is typical.
The price cap doesn't apply to you if you have signed up to a fixed energy tariff.
Find out more: What is the energy price cap?
What will my energy cost in October 2025?
The new average rates for variable tariffs for those who pay by direct debit will be:
- Electricity unit rate: 26.35p per kWh (currently an average 25.73p).
- Electricity daily standing charge: 53.68p per day (currently an average 51.37p).
- Gas unit rate: 6.29p per kWh (currently an average 6.33p).
- Gas daily standing charge: 34.03p per day (currently an average 29.82p).
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 with medium energy use paying by monthly direct debit can expect to pay around £146 per month for gas and electricity used between October and December. The same ‘typical’ household currently pays around £143 per month.
Ofgem sets the price cap and defines medium energy use as 11,500kWh of gas and 2,700kWh of electricity per year.
You'll pay a different amount if you use more or less than this. 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 October 2025.
| Fuel type | Low user | Medium user | High user |
| Current electricity rate (25.73p per kWh) | £463 | £695 | £1,055 |
| New electricity rate (26.35p per kWh) | £474 | £711 | £1,080 |
| Current electricity standing charge (51.37p per day) | £187 | £187 | £187 |
| New electricity standing charge (53.68p per day) | £196 | £196 | £196 |
| Current gas rate (6.33p per kWh) | £475 | £728 | £1,076 |
| New gas rate (6.29p per kWh) | £472 | £723 | £1,069 |
| Current gas standing charge (29.82p per day) | £109 | £109 | £109 |
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.
Should I get a fixed energy deal?
As of August 2025, Ofgem estimates that around 34 million domestic energy accounts are on standard variable tariffs, while around 20 million accounts have fixed deals. Those with fixed deals won’t be affected by changes to the price cap. Most households have two tariffs, one for electricity and one for gas.
When we checked on 20 August 2025, we found more than 20 tariffs on the energy market that cost less than the price cap that applies from July to September 2025. Annual savings for the cheapest available fixed tariff were more than £200 for a typical, medium-use household compared with the current price cap.
Even though the October price cap is only increasing by a modest amount, if fixed rates stay as they are until then, you'll likely save money by switching to a fixed tariff if you're currently paying variable rates.
Find out more: See our table of the latest cheap energy deals in our guide on how to get the best energy deal.
Compare gas and electricity prices today: use our free, independent energy comparison service to find the best provider for you
What if I can't afford my energy bills?
If you're 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. Under Ofgem’s rules, suppliers must offer payment plans you can afford, and you can also ask for ‘emergency credit’ if you use a prepay meter and can’t top up. Some of the ways suppliers can help you include giving you more time to pay, offering you a payment break or reduction in your payments, and helping you access hardship funds.
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
