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Five minute read time
Energy price cap and what you need to know
Written by Herman, senior marketing executive
The energy price cap is changing from 1 October 2025, which means many households will see a small increase in their energy bills. For a typical home using gas and electricity and paying by Direct Debit, annual energy costs will increase to around £1,755 a year. That's around £3 more a month than the current price cap.
Remember, the price cap only limits how much energy suppliers can charge for each unit of gas and electricity. If you use more energy, you'll pay more.
What is the energy price cap?
Some people think the energy cap is the maximum you could spend on energy bills per year, but this is not the case.
The price cap is a limit on:
- the amount suppliers can charge for each unit of energy you use
- the daily standing charge
Your bill could be higher or lower than the average depending on:
- how much energy you use
- where you live
- the type of meter you have
The price cap applies if you're on a standard tariff and pay by:
- Direct Debit
- standard credit (when you pay after receiving a bill)
- a prepayment meter
It does not apply if:
- you're on a fixed tariff
- you're on certain specialist tariffs, such as some green energy tariffs
What can I expect to pay?
From 1 October to 31 December 2025, the average prices for customers paying by Direct Debit will be:
| Gas | Electricity |
| 6.29 per KWh | 26.35p per kWh |
| 34.03p daily standing charge | 53.68p daily standing charge |
What is the daily standing charge?
A standing charge is a fixed amount you pay each day for your energy supply, even if you don't use any gas or electricity. The amount can vary depending on where you live and your supplier.
Who is my gas and electricity supplier?
It's important to know who supplies your energy so you know who to contact about bills, payments or tariffs.
You can find your supplier by:
- Gas supplier. Use the Find My Supplier free service or call the Meter Number Helpline on 0870 608 1524.
- Electric supplier. Contact your local electricity distribution company to find out who your electricity supplier is.
How can I save money on my energy bills?
There are lots of small changes that can help reduce your energy use and save money:
- Turn your thermostat down by 1°C. This could help lower your heating costs.
- Only boil the water you need in the kettle.
- Switch off TVs, computers and other devices instead of leaving them on standby.
- Cook with lids on pans to reduce cooking time and energy use.
- Turn off lights in rooms you're not using.
You can also find out more about help with your energy bills.
(Updated with current information September 2026)
Need support?
If rising energy costs are affecting you, we're here to help. Our Financial Inclusion team can offer free, confidential advice on managing your money, reducing household costs, and checking that you're getting all the financial support you're entitled to.