Energy price cap to rise by 2% – but what does that mean for bills?
In summary:
- Energy price cap will rise by £35 in October – a bigger jump than analysts expected
- Homes with better energy efficiency likely to be less impacted as they have lower energy bills on average – A-rated homes may see £11 extra per year extra on average, while G-rated homes could pay £134 more
- The cap only applies if you’re on a standard tariff; fixed deals aren’t affected, so it could be a good option to look at fixing your energy deal now
The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy you use. It’s updated every three months by energy regulator Ofgem, to make sure that prices reflect changes in underlying energy costs, as well as inflation.
The price cap is set at £1,720 from July to September – 7% less than the previous quarter. But from October, the cap will rise by 2%, to £1,755. This is around double the rise analysts had been predicting before the announcement was made this week.
But the price cap is based on what Ofgem deems a ‘typical’ household, rather than setting a limit on how much you pay. Ofgem estimates a typical or ‘medium-use household’ as those living in a 2-3 bedroom house with 2 or 3 people. The amount you pay will depend on how much energy you use, as well as how you pay your energy bills, the size of your home, and how energy efficient it is.
You can read more about the average UK energy bill, depending on the type of property you live in, here. Or take a look at what a 2% increase could add to the average annual energy bill below.
How what does a 2% increase look like for the average annual energy bill?
Take a look at the average annual increase to energy bills for the October – December 2025 price cap, based on EPC rating and property type.
| Property type | EPC rating A | EPC rating B | EPC rating C | EPC rating D | EPC rating E | EPC rating F | EPC rating G |
|---|---|---|---|---|---|---|---|
| 1-bed flat | £10 | £16 | £25 | £36 | £49 | £60 | £78 |
| 2-bed flat | £10 | £19 | £29 | £43 | £59 | £76 | £98 |
| 3-bed terraced house | £10 | £21 | £36 | £51 | £70 | £89 | £115 |
| 3-bed semi-detached house | £9 | £20 | £37 | £51 | £70 | £91 | £111 |
| 3-bed detached house | £9 | £23 | £40 | £56 | £76 | £97 | £129 |
| 4-bed semi-detached house | £12 | £25 | £46 | £65 | £91 | £128 | £158 |
| 4-bed detached house | £12 | £25 | £50 | £69 | £94 | £120 | £170 |
| 5-bed detached house | £15 | £39 | £66 | £92 | £123 | £158 | £210 |
Does the energy price cap affect me?
If you’re on a fixed tariff for your energy supply, there’ll be no change to how much you pay. Fixing your energy deal can be a good way to beat any increases applied to the price cap, because for the period of your deal, your energy costs won’t change, regardless of what happens with the price cap. Ofgem estimates that right now, around 37% of households are on a fixed energy tariff.
Many households may find that they can make savings by fixing their energy deal. You can also look at switching to a different energy supplier if there are cheaper deals available elsewhere.
The energy price cap is only applied if you’re on a default energy, or standard variable, tariff. This includes those who pay by direct debit, standard credit, prepayment meter, or who have an Economy 7 (E7) meter.
READ MORE: Find out how the Energy Price Cap is set
What does a 2% increase to the average energy bill look like?
Our analysis shows that homes with higher energy ratings have lower energy bills, on average. Based on the upcoming price cap increase, this is likely to mean £11 more on average for A-rated homes annually, and a £134 increase for G-rated homes. D-rated homes, which is the current average EPC rating, are likely to see a £58 rise on average.
Our energy bill tracker analyses the EPCs of homes recently listed for sale, and what an annual energy bill could look like based on property type, and EPC rating.
How will the price cap change impact my energy bills?
You can check the average rate charged per unit of energy used below, and compare that with your household energy bills to work out an estimate of your household’s energy usage.
Energy price cap: What’s the average rate charged per unit of energy used?
| Jul-Sep 2025 | Oct-Dec 2025 | |
|---|---|---|
| Gas | 6.33p per kWh | 6.29p per kWh |
| Electricity | 25.73p per kWh | 26.35p per kWh |
Source: Ofgem. Based on average rates for direct debit users, which vary by region
Ofgem estimates a typical or ‘medium-use household’ as a two- to three-bedroom house with 2 or 3 people living in it.
If you live in a flat, or a one-bedroom house, your energy use is estimated to be ‘low’. And if you live in a four-bedroom home, with 4-5 people, your energy use is estimated to be ‘high’. See below.
| Energy use | Example – size of home & number of residents | Typical annual gas use | Typical annual electricity use |
|---|---|---|---|
| Low | Flat or 1-bed house; 1-2 people | 8,000 kWh | 1,800 kWh |
| Medium | 2-3 bed house; 2-3 people | 12,000 kWh | 2,900 kWh |
| High | 4+ bed home, 4-5 people | 17,000 kWh | 4,300 kWh |
| Source: Ofgem |
Source: Ofgem
The current rates and standing charges in your region are outlined here.
How much you’ll pay also depends on how energy-efficient your home is, and which appliances you use – and how often you use them.
Energy usage is calculated in kilowatt (kWh) hours, or units. One kWh is enough to power a 100-watt lightbulb for 10 hours, but in comparison, it takes 4.5 kWhs to power a single cycle of a tumble dryer.
Will there be a change to the standing charge on my bill?
The fixed standing charge you pay is just to have a connection, regardless of how much energy you use. It’s also used to cover things like maintenance of the supply network, take meter readings, and to support government and environmental schemes.
From July to September 2025, the standing charge is 51.37p for electricity, and 29.82p for gas. From October to December, the standing charge will rise to 53.68p per day for electricity, and 34.03p per day for gas.
Ofgem launched a review into standing charges in 2023, and you can read their report into the findings here. The most significant recommendation from Ofgem was that energy companies may in future have to offer customers a zero standing charge tariff.
Is there anything I can do to save money on my bill?
When energy bills were at their peak in 2022, switching to a different supplier was no longer an option for saving money on your energy bills. But now, switching to a new supplier, or checking whether your existing supplier has a better deal, might just save you money.
You can use our tool to check whether you could reduce your bills by switching, or moving to a new deal with your current provider.
What could happen to energy costs in future?
The energy price cap covers a period of three months and changes four times a year: in January, April, July and October.
Predictions can change, but at the moment, it looks as though the price cap could remain unchanged for the first three months of 2026.
READ MORE: What’s the average UK energy bill and how can I save money?
