Changes to energy price cap between 1 July and 30 September 2025 - Prices to Go Down

23rd May 2025

Every 3 months we review and set a level for how much an energy supplier can charge for each unit of energy and daily standing charge, under the price cap.

From 1 July to 30 September 2025 the price for energy for a typical household who use electricity and gas and pay by Direct Debit will go down by 7% to £1,720 per year. For a typical household, this will reduce their energy bills by £11 a month.

This is 9% (£152) per year higher than the price cap set for the same period last year, from 1 July to 30 September 2024 (£1,568).

Energy price cap rates 1 July to 30 September 2025
Electricity rates
If you are on a standard variable tariff (default tariff) and pay for your electricity by Direct Debit, you will pay on average 25.73 pence per kilowatt hour (kWh). The daily standing charge is 51.37 pence per day. This is based on the average across England, Scotland and Wales and includes VAT. 

Gas rates
If you are on a standard variable tariff (default tariff) and pay for your gas by Direct Debit, you will pay on average 6.33 pence per kilowatt hour (kWh). The daily standing charge is 29.82 pence per day. This is based on the average across England, Scotland and Wales and includes VAT. 

Why energy prices have gone down
Global wholesale prices for energy have gone down. While this is the main cause, changes to supplier business costs have also made an impact on energy prices falling.

Most households will see a reduction in their standing charges during this period.

Costs included in the energy price cap
The level of the energy price cap is made up of different costs, for example the wholesale cost of gas and electricity, costs to supply energy on the network and VAT. These costs are split within the energy price cap between the unit rate and the standing charge.

Read about typical household energy use and how the energy price cap is calculated on our Average gas and electricity use explained page

Learn more about the costs that make up the standing charge for electricity and gas

Managing your energy bills and tariff
You are covered by the energy price cap if you are on a default tariff and 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

The actual amount you pay will depend on how much energy your household uses, where you live and the type of meter you have.

You could pay less for your energy by changing your energy tariff or payment type. Find out if you can change or fix your tariff and how to switch energy supplier

Tell your energy supplier if you cannot pay your bills. They must help you if you ask.

Next energy price cap review
We review and set a level on how much an energy supplier can charge for each unit of energy including the standing charge every 3 months. The levels for the period 1 October to 31 December 2025 will be published by 27 August 2025.