Changes to the energy price cap between 1st October and 31st December 2025
The energy price cap is the maximum amount that energy suppliers can charge people for each unit of energy, and the daily standing charge.
Every 3 months, Ofgem reviews this and sets a new level. From October 1st, the price cap is increasing 2%.
For a typical household, energy bills will increase by £2.93 per month or £35.14 per year.
Gas
Standard Credit - Unit rate: 6.68p per kWh. Standing charge: 37.70p per day
Direct Debit - Unit rate: 6.33p per kWh. Standing charge: 29.82p per day
Prepayment - Unit rate: 6.11p per kWh. Standing charge: 29.82p per day
Electricity
Standard Credit - Unit rate: 27.18p per kWh. Standing charge: 59.26p per day
Direct Debit - Unit rate: 25.73p per kWh. Standing charge: 51.37p per day
Prepayment - Unit rate: 24.92p per kWh. Standing charge: 51.37 per day
What affects the Price Cap?
The price cap is calculated on the range of costs energy suppliers face. The largest cost is wholesale energy - so what the energy suppliers themselves pay for the gas and electricity. This is what causes most of the change, as wholesale prices are always fluctuating. Around 43% of your bill accounts for the price of wholesale energy.
Other elements are things like the cost of maintaining pipes and wires, and operating costs, which is around 37% of your bill. VAT and policy account for another 17%. Ofgem allows a ‘fair rate of return’ for suppliers only around 3% of your bill is profit for your supplier.
There has been an increase in the price cap due to an increase in the cost of transporting energy. The costs have been adjusted so that the energy supply is secure.
Are you impacted by the energy price cap?
If you are on a default tariff and pay for your electricity and gas by either:
Standard credit - so you make a payment when you get your bill
Direct debit
Prepayment meter
Take a look at our website for more energy advice or get in touch if you need help with your energy bills: https://www.cawb.org.uk/contact
