The energy price cap will rise by 2% from October 1 for a typical household in England, Scotland and Wales, Ofgem has said.
The increase will see bills increase by around £2.93 a month for the average household, leaving a home on a default tariff paying £102 for what currently costs £100 per month.
Latest figures show more than a third of customers (37%) are now on fixed tariffs, which means they are protected from the upcoming rise.
The quarterly energy price cap will rise by 2% from 1 October 2025.
— Ofgem (@ofgem) August 27, 2025
This will be a rise of around £2.93 per month for the average household.
This is a cap on energy unit price plus standing charge, not a cap on total bills.
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Tim Jarvis, director general of markets at Ofgem, said: “While there is still more to do, we are seeing signs of a healthier market.
“There are more people on fixed tariffs saving themselves money, switching is rising as options for consumers increase, and we’ve seen increases in customer satisfaction, alongside a reduction in complaints.
“While today’s change is below inflation, we know customers might not be feeling it in their pockets.
“There are things you can do though – consider a fixed tariff as this could save more than £200 against the new cap.
“Paying by direct debit or smart pay-as-you-go could also save you money.
“In the longer term, we will continue to see fluctuations in our energy prices until we are insulated from volatile international gas markets.
“That’s why we continue to work with Government and the sector to diversify our energy mix to reduce the reliance on markets we do not control.”
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