Price cap falls by 7%:
Ofgem has announced a 7% reduction in the energy price cap for the period 1 July to 30 September 2025. This brings the annual cost for a typical dual-fuel household paying by Direct Debit down to £1,720.
What is the Energy Price Cap?
The energy price cap limits how much suppliers can charge per unit of gas and electricity on standard variable tariffs. It does not cap your total bill, which depends on how much energy you use. The cap helps protect households from being charged excessively high rates.
If you are on a fixed tariff, this change will not affect your bill.
You can use the Money Saving Expert Energy Price Cap Calculator to see how the new cap might impact your household.
Should you consider switching?
Bills remain higher than this time last year. Some fixed deals are currently 15-18% cheaper than the new cap, so it may be worth exploring your options.
Things to consider before switching
- Exit fees: Check your current tariff for any penalties
- Customer service: Look at supplier ratings and reviews
- Household usage: Consider whether your energy use is high or low
- Current supplier rates: Ask if they can offer a better deal
Take a meter reading
If you are on a standard variable tariff and do not have a smart meter, submit a meter reading before 1 July. This ensures you are not charged the higher rate for energy used after the new cap takes effect. If you are on an Economy 7 tariff, remember to take both day and night readings.
If you need help with switching suppliers or energy related advice then please get in touch here.