Energy price cap to increase by 2% to £1,755 in October 2025

Ofgem has announced that the energy price cap will be increased by 2% for the period from 1 October to 31 December 2025.

The current cap is set at £1,720 and this increase will see it rise to £1,755. This is as a result of an increase in costs for network operators to ensure a stable electricity supply when there is an imbalance of power in the system.

While this is a relatively small increase, it comes at the beginning of the autumn and winter months when energy usage is higher. These two factors could combine to mean a more significant increase in bills than the price cap on its own would result in. This is because the price cap doesn’t cap bills; it caps the unit rates and standing charges of standard variable tariffs. If you use more than the advertised average annual cost of the price cap, you’ll pay more (and if you use less, you’ll pay less).

Richard Neudegg, director of regulation at Uswitch.com, said: “Today’s increase confirms that households cannot rely on the regulator to cut energy rates in time for some of the coldest months in the year.

“This has been a particularly strong few weeks for good fixed-rate deals, with around 27 fixed deals available which beat the October cap. Over a third of households have now moved off the price cap to fixed tariffs.

“Households should run a comparison and review the options available for their usage levels and region. Fixing your energy tariff to cheaper rates should be a no-brainer for all households who are able to.”

What should customers do about the price cap?

Those who are affected by the price cap (i.e. not on a fixed deal) should look at switching to a fixed deal. They can run an energy comparison and switch their energy in as little as six minutes, making significant savings in the process.