60-second summary
Here’s the latest on the energy price cap in a nutshell:
The energy price cap is set at £1,720 per year on average for a typical-usage household paying by direct debit.
The price cap applies to people on standard and variable tariffs. If you are on a fixed tariff, you won’t be affected.
Help is available if you are struggling to pay your energy bills. Talk to your supplier first.
What is the energy price cap?
The energy price cap is a mechanism introduced by the government in 2019 to protect consumers from "loyalty penalties" and ensure fair pricing for energy.
It limits the amount energy companies can charge customers who are on default tariffs, including standard variable tariffs (SVTs), prepayment meters, and Economy 7 meters.
The price cap rate sets a limit on the maximum amount suppliers can charge for each unit of gas and electricity, as well as the daily standing charge which is set by the UK’s energy regulator Ofgem.
From 1 July to 30 September 2025, the energy price cap is set at £1,720 per year on average for a typical usage household paying by direct debit.
You are covered by the price cap if you pay for your electricity and gas by either:
Standard credit (payment made when you get your electricity and gas bill)
Direct Debit
Prepayment meter
Economy 7 (E7) meter.
What effect will the changes to the price cap have on bills?
The average annual energy bill for a typical household fell by £129 a year from 1 July 2025.
Another way to think about it, particularly if your bills are not ‘typical’, is that the price has fallen by 7%. So for every £100 you were paying, you’ll now pay £93.
Is £1,720 the maximum I have to pay?
No, the energy price cap isn't a limit on how much you’ll pay in total. Your total bill depends on:
How much energy you use
Where you live
How you pay for your energy.
What is capped is the amount you pay for each unit of gas or electricity you use. If you use more than the average, based on a typical dual-fuel household paying by direct debit, you’ll pay more.
One thing to note is that if you pay by cheque, cash or bank transfer when you get your bill, you could pay less by switching to direct debit.
Is the standing charge also changing?
The standing charge is a fixed daily fee you pay regardless of how much energy you actually use.
From 1 July, Britain’s standing charges will reduce for most households, but some regional variation remains.
See the changes to the standing charge by region on the Ofgem website.
How do I know if I’m on a default tariff?
You’re likely to be on a default tariff if you haven’t switched energy suppliers before or you’ve automatically rolled on to the standard variable rate after your fixed-rate tariff came to an end. You’re also likely to be on the standard tariff if your supplier stopped trading and you were switched to a new supplier.
Check your bill to see which tariff you are on, or ask your supplier if you are not sure.
When will the energy price cap next change?
The Ofgem price cap changes every three months. The next price cap announcement will take place by 27 August 2025, for the period 1 October-31 December.
What can I do if I’m struggling to pay my energy bill?
High energy prices, alongside general rises in the cost of living, are making it difficult for many people to afford to pay their bills. But help is available.
First, you should talk to your supplier. They must discuss payment plans and tell you what support is available.
There are also charitable schemes you can apply to for help. Get details of where to apply and more in our guide: What to do if you can’t afford your energy bills.
Government support is also available. See Help with energy bills: available grants and schemes to make sure you claim everything you’re entitled to.
Using less energy
Another way to keep your bills in check is to use less power if you can. See these sources of help for making your home more energy efficient:
What is average usage based on?
The average figure of £1,720 is based on a dual fuel household paying by direct debit, with a typical consumption of 2,700 kWh (kilowatt hours) of electricity and 11,500 kWh of gas.
Ofgem works out the energy price cap based on these calculations:
Energy use | Example – home type and number of residents | Typical annual gas use (kWh) | Typical annual electricity use (kWh) |
|---|---|---|---|
Low | Flat or 1-bedroom house 1-2 people | 7,500 | 1,800 |
Medium | 2-3 bedroom house 2-3 people | 11,500 | 2,700 |
High | 4+ bedroom home 4-5 people | 17,000 | 4,100 |
FAQs
Do the Energy Price Guarantee and energy price cap apply to households using alternative fuels?
No, they apply only to gas and electricity.
Are fixed-term tariffs affected by the energy price cap?
No, fixed rate tariffs don’t change with the price cap. The tariff you have signed up to stays the same for the length of the deal. So even if the price cap goes up, your tariff won’t change.
For more than 20 years, Dan has been introducing, developing and managing product propositions across a variety of industries, including energy, insurance and banking, all to get the right outcome for customers.
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