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Energy Price Fall With New Reduced Price Cap Announced

2nd July 2025

Between 1 July and 30 September 2025, the energy price cap is set at £1,720 per year for a typical household who use electricity and gas and pay by Direct Debit. This is a decrease of 7% compared to the cap set between 1 April to 30 June 2025 (£1,849).

The price cap is based on typical household energy use. Read how typical household energy use is worked out in our Average gas and electricity usage guidance.

The price cap also makes sure that prices for people on a standard variable tariff (default tariff) are fair and that they reflect the cost of energy.

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