Energy price cap: will this price cap cut your energy bills?
What’s the current price cap situation?
The current price cap is set at £1,755 per year for the average household paying by Direct Debit. This was an increase from its previous level of £1,720, but not as high as it was earlier in the year, when it was set at £1,849.
£1,755 wasn’t a big increase, but it did come at a time when bills were likely to rise anyway because the winter months started to take hold and temperatures began to drop.
What are analysts expecting from this price cap?
Analysts are expecting a further drop in the November price cap (which will come into effect from 1 January 2026). The next price cap will likely be around £1,735. You can see suppliers’ final predictions in the table below.
| Supplier | Prediction |
|---|---|
| British Gas | £1,745 |
| EDF | £1,755 |
| E.ON Next | £1,737 |
| Octopus | £1,736 |
Is this price cap drop a good thing for energy customers?
Yes, but the same caveats that applied to the previous price cap drop apply here as well. This price cap covers January, February and March when temperatures will still be cold, so energy usage overall will still be high for many households.
This is a small price cap drop, so it won’t offset that increase in energy usage, and bills could still be high. And as always, the price cap figure is only an illustrative one - the actual amount customers will pay depends on their energy consumption.
What should energy customers do?
Customers who aren’t on a fixed tariff already should look at fixing their energy deal. There are deals on the market that are priced much less than the current and soon-to-be-announced price caps, so run an energy comparison to see what’s available.
Run an energy comparison
Click here to compare energy prices and get started on your energy switch.
If you’re already on a fixed tariff, there are ways to reduce your energy consumption to bring bills down as much as possible.
For instance, you can:
- Turn your thermostat down by one degree
- Reduce your tumble dryer use
- Use cold washing cycles or eco settings on dishwashers and washing machines.