Compared to October, the Ofgem energy price cap will increase by 2%

For millions of people covered by the energy price cap, gas and electricity bills are expected to rise in the last quarter of 2025

The energy price cap will increase by 2% starting in October, which will result in higher energy bills for millions of consumers.

Between October 1 and December 31, 2025, the tariff that billpayers are forced to pay if they haven't chosen to fix their bills will increase by about 2 points per month, according to a recent announcement from energy regulator Ofgem.

For the last quarter, the average household under the energy price cap that pays for gas and electricity by direct debit will pay 1,755 annually, up from 1,720 previously.

Due to the price cap, customers who use more energy may pay more than the maximum rate per unit and standing charge that can be billed to them.

Customers are being advised by Ofgem to compare energy tariffs and determine whether a fixed rate plan would save them money in light of the new price cap.

More than a third of customers (37 percent), or about 20 million people, are currently on fixed tariffs and will not be impacted by the change, according to the energy watchdog.

Tim Jarvis, Director General, Markets at Ofgem, acknowledged there is "still more to do" but said there are "signs of a healthier market".

"We have seen increases in customer satisfaction, along with a decrease in complaints, and more people are saving money by switching to fixed tariffs as consumer options increase," he said.

Even though today's change is less than inflation, we are aware that consumers may not feel the impact immediately.

Jarvis emphasized the need to diversify energy sources and stated that energy prices would continue to fluctuate in the UK "until we are insulated from volatile international gas markets."

Part of the impending increase is a "small" increase in network and policy costs.

To ensure that those who are having financial difficulties can receive the assistance they require from their supplier, Ofgem has also implemented regulations. To lower the chance of self-disconnection, this can entail emergency credit or customized repayment plans.

Under the new price cap, how much will my energy cost?

Which region you live in, how you pay your bill, and the kind of energy meter you have will all affect the actual energy price cap rates you are charged.

The following numbers are based on the average number of direct debit billpayers in England, Scotland, and Wales.

On the Ofgem website, you can see the current unit rates and standing fees for your area.

Ofgem is the source.

How can I lower my energy costs?

Britons could reduce their energy costs in a few different ways.

According to Ofgem, for example, moving to a fixed rate tariff might be £200 less expensive than the new cap.

The current number of domestic customers on a standard variable tariff (SVT) is approximately 34 million.

You might save money by using smart pay or direct debit to make your payment.

According to the watchdog, 8 million consumers currently pay with standard credit, but switching to direct debit could save them 135 point 60 annually.

Come on, Gareth Kloet. The "timely reminder to check if your current energy contract is still giving the best value for you" was stated by a representative for Compare Energy today.

"You can use a comparison website to help you evaluate your options and determine whether you would prefer the flexibility of a variable rate that can adjust to market fluctuations or the security of a fixed rate plan," he continued.

Prior to making the switch, clients should thoroughly examine their existing contract and energy usage.

"Watch out for any early exit fees, as these could reduce or even eliminate any savings from moving to a new provider," Kloet told the audience.