Energy price cap: what you need to know before 1 October
Save £226* with one of the nation's cheapest energy deals
Fuse Energy is currently offering one of the cheapest energy deals currently on the market here on Uswitch. While you can save a significant amount now, you'll save even more on your bills with this deal when energy rates rise on 1 October.
However, it's only available for a limited time, so run an energy comparison today to see how its savings stack up for you.
What’s happening with the energy price cap?
The energy price cap is going up on 1 October by 2%. It changes four times a year and this is the final time it will change in 2025.
The price cap is Ofgem’s mechanism for capping the unit rates and standing charges that suppliers can charge customers on standard variable tariffs. It’s usually reported as an annual average usage figure for a medium-sized household paying by direct debit - currently this is £1,720, but when the price cap goes up, it will be set at £1,755.
However, it’s vital to remember that this isn’t a cap on bills - your bill won’t be capped at £1,755. If you use more energy than the advertised figure covers, you’ll pay more. If you use less, you’ll pay less.
Who does the price cap rise affect?
The price cap affects anyone who isn’t on a fixed tariff, including those on:
- Standard variable tariffs
- Tracker tariffs
- Tariffs from certain suppliers who are exempt from the price cap (Ecotricity, Good Energy and 100Green).
What should you do if the price cap rise affects you?
If you’re not on a fixed tariff, you should strongly consider switching to one. There are a good range of deals from almost every supplier that offer good savings against the price cap. If you switch before 1 October, your savings will be calculated against the current price cap, and you’ll then save even more when the price cap goes up in October.
Because it’s so difficult to predict what prices will do looking further forward, it’s important to ensure you’re taking advantage of savings when they’re available and knowing that you have price certainty for the duration of your fixed contract. Run an energy comparison to see available deals and savings by clicking the button below.
Run an energy comparison
Click here to compare energy prices and get started on your energy switch.
Why is the price cap going up?
Ofgem says the price cap is going up for the following reasons:
- an increase in electricity balancing costs which cover the costs incurred by network operators to ensure a stable electricity supply
- an increase in costs associated with the extension of the Warm Home Discount (WHD) scheme
- adjustments to gas network costs
- increases to standing charges primarily driven by the government’s expansion of the Warm Home Discount.
When is the next price cap?
The next price cap will come into effect on 1 January 2026 and run until 30 March. It will be announced by 25 November.
What is likely to happen with the next price cap?
The price cap is affected by wholesale market changes and global developments which can all significantly affect the level it’s set at with very little notice. With that in mind, it’s very difficult to make accurate predictions about the levels of future price caps. However, various suppliers and organisations make regularly updated forecasts and, as of 26 September, British Gas predicts that the next price cap will go up by £5 to £1,760.
*Average annual cost of the cheapest tariff available on Uswitch compared to the October 2025 price cap: £1,529 vs £1,755, which is a saving of £226 for dual fuel customers. Actual bill size will vary depending on your individual household consumption. Prices based on customers consuming medium energy usage as defined by Ofgem’s new Typical Domestic Consumption Values (TDCV) (2,700 kWh of electricity and 11,500 kWh of gas per year), paying by direct debit, with paperless billing. Prices averaged across all regions. Prices correct as of 26 September 2025. This savings figure excludes any cashback you might be eligible for when switching.