How much are energy prices going up?

Typical gas and electricity bills will increase slightly on 1 October when a new energy price cap takes effect.

It follows a drop in prices at the start of July, but there are concerns that bills remain unaffordable for some.

The energy price cap sets the maximum amount customers can be charged for each unit of energy, but actual bills depend on how much gas and electricity you use.

The energy price cap covers around 20 million households in England, Wales and Scotland and is set every three months by Ofgem.

It fixes the maximum price that can be charged for each unit of energy on a standard – or default – variable tariff for a typical dual-fuel household which pays by direct debit.

From 1 October, the annual bill for a dual-fuel direct debit household using a typical amount of energy will be £1,755, up £35 a year on the previous cap.

Between 1 October and 31 December 2025, gas prices are capped at 6.29p per kilowatt hour (kWh) and electricity at 26.35p per kWh.

The cap does not apply in Northern Ireland, which has its own energy market.

Your energy bill depends on the overall amount of gas and electricity you use, and how you pay for it.

The type of property you live in, how energy efficient it is, how many people live there and the weather all make a difference.

The Ofgem cap is based on a “typical household” using 11,500 kWh of gas and 2,700 kWh of electricity a year with a single bill for gas and electricity, settled by direct debit.

The vast majority of people pay their bill this way to help spread payments across the year. Those who pay every three months by cash or cheque are charged more.

Submitting a meter reading when the cap changes means you are not charged for estimated usage at the wrong rate.

This is especially important when prices go up.

Customers with working smart meters do not need to submit a reading as their bill is calculated automatically.

About four million households had prepayment meters in January 2025, according to Ofgem.

Prepayment customers were previously charged more than those who settle their bill by direct debit, but now pay slightly less.

From 1 October, the typical annual bill for prepayment customers will be £1,707.

Many pre-payment meters have been in place for years, but some were installed more recently after customers struggled to pay higher bills.

Rules introduced in November 2023 mean suppliers must give customers more opportunity to clear their debts before switching them to a meter. They cannot be installed at all in certain households.

Fixed-price deals are not affected by the energy price cap, which changes every three months and can rise and fall.

They offer certainty for a set period – often a year, or longer – but if energy prices drop when you are on the deal, you could be stuck at a higher price. You may also have to pay a penalty to leave a fixed deal early if you change your mind.

Ofgem, the energy regulator, says customers who want the security of knowing what their bill will be should consider moving to a fixed deal. However, it says they should make sure they understand all the costs.

Martin Lewis, founder of Money Saving Expert, recommends checking whole-of-market energy price comparison sites to help find the best deal.

The Household Support Fund, which was introduced in September 2021 to help vulnerable customers, has been extended until March 2026.

The Warm Home Discount scheme is also being overhauled. From winter 2025, anyone on means-tested benefits will automatically see £150 taken off their bills, no matter what size of property they live in.

The government’s Fuel Direct Scheme can help people to repay an energy debt directly from their benefit payments.

In addition, suppliers must offer customers affordable payment plans or repayment holidays if they are struggling with bills.

Most suppliers also offer hardship grants.