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What is the Energy Price Cap?
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How will energy prices change?
What will happen to the Energy Price Cap in 2025 and beyond?
Updated 11 February 2025
If you're in one of the 80+% of homes in England, Scotland or Wales on a standard variable tariff, the price you pay is controlled by the Energy Price Cap. Yet the Cap changes every three months, so it's important to know what's likely to happen in future and how it affects your bill.
How is the Energy Price Cap predicted to change in 2025?
Energy Price Cap changes are based on a published algorithm set out by regulator Ofgem. As it's a publicly available algorithm, firms can use it to make predictions on how the Cap will change in future. For full info on how the Cap works, see our Price Cap FAQs.
Currently, a handful of companies make regular, publicly available Price Cap predictions: energy suppliers EDF, British Gas and E.on Next, as well as energy analysts Cornwall Insight.
Energy prices are predicted to RISE again over the next year
On 1 January, the Energy Price Cap rose by 1% (meaning a household with typical usage paying by Direct Debit will pay £1,738 a year).
After this, analysts are predicting a rise in the Price Cap of around 5% to 7% in April 2025, followed by a further rise in July.
Annual Price Cap predictions
|
EDF Price Cap predictions on typical use (1) | British Gas Price Cap predictions on typical use (2) | E.on Next Price Cap predictions on typical use (3) | Cornwall Insight Price Cap predictions on typical use (4) |
CURRENT PRICE CAP Confirmed |
UP 1% £1,738 a year |
|||
1 April to 30 June 2025 Prediction |
UP 7% £1,859 a year |
UP 5% £1,830 a year |
UP 6%£1,838 a year |
UP 3% £1,784 a year |
1 July to 30 September 2025 Crystal-ball gazing |
UP 3%£1,919 a year | UP 6% |
UP 4% £1,907 a year |
N/A |
1 October to 31 December 2025 Crystal-ball gazing |
UP 1% |
UP 1% £1,950 a year |
DOWN 1% £1,890 a year |
N/A |
1 January to 31 March 2026 Crystal-ball gazing |
NO CHANGE |
SMALL CHANGE |
N/A | N/A |
Based on a dual-fuel household paying by Direct Debit. Ofgem typical use: 2,700 kilowatt hours of electricity, 11,500 kilowatt of gas. (1) According to the latest prediction (on 11 February 2025). (2) According to the latest prediction (on 10 February 2025). (3) According to the latest prediction (on 10 February 2025). (4) According to the latest prediction (on 31 December 2024). Cornwall Insight has asked us to tell you that it has given MoneySavingExpert written consent to use its predictions under its ‘copyright disclaimer for commercial use of the press releases’, where it publishes its Price Cap forecasts.
The further out the prediction is, the more crystal-ball gazing it is
For example, the April 2025 Price Cap will be based on the assessment period from 18 November 2024 to 17 February 2025. As we're almost at the end of this period, the predictions are fairly strong.
After that, it becomes guesswork, as we aren't anywhere near the assessment periods for future Caps, and - as we've seen in the past - things can change rapidly.
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What are current energy prices?
On typical use, a household paying by Direct Debit pays £1,738 a year under the current Price Cap. But remember, the cap doesn't limit how much you pay, it's a cap on what you pay for each unit of gas and electricity that you use, plus it sets a maximum daily standing charge (what you pay to have your home connected to the grid) – so if you use more, you pay more.
The table below shows the average unit rates and standing charges per day (these vary by region) under the current Price Cap.
For a region-by-region breakdown of what you're currently paying, see our Energy Price Cap rates guide or see our 'What you'll pay from January' calculator for an estimate of how much you should be paying under the current Cap.
| Gas | Electricity | |
| Direct Debit | Unit rate: 6.34p per kWh Standing charge: 31.65p per day |
Unit rate: 24.86p per kWh Standing charge: 60.97p per day |
| Prepayment | Unit rate: 6.11p per kWh Standing charge: 31.65p per day |
Unit rate: 24.03p per kWh Standing charge: 60.97p per day |
| On receipt of a bill | Unit rate: 6.67p per kWh Standing charge: 36.31p per day |
Unit rate: 26.16p per kWh Standing charge: 67.05p per day |
| Rates and standing charges are averages, which vary by region. |
||
Can I switch and save?
Now could be a good time to fix, as there are deals cheaper than the current Price Cap.
Your best deal will depend on your region and usage, so it's best to get a bespoke comparison. You can use our Cheap Energy Club to see the top deals for you, or see our Should you fix? guide for full info on the all options available.
And switching's easy, the only thing that changes is customer service and who bills you. It's the same gas, same electricity and same safety. Your supply always stays on and no one visits your home unless you want or need smart meters.
Why have prices been so high?
The energy market has been crisis in recent years, with the price of energy rising massively toward the end of 2021, hitting a peak over the winter of late 2022 and early 2023, before falling back over the last year or so. Yet prices are still staggeringly high, with many paying nearly double compared to pre-crisis levels.
This has all been down to high wholesale energy prices. When the crisis began, in 2021, wholesale prices rose rapidly, as numerous countries lifted Covid-19 lockdowns, causing a surge in energy demand, as business and industry re-opened. The conflict between Russia and Ukraine also caused wholesale energy prices to spike, as many countries reduced or ended Russian gas imports in response, constraining supplies further.
While wholesale prices are significantly lower now than at the peak of the energy crisis, they still remain much higher than pre-crisis levels.
How to cut energy costs
There are a few areas to focus on...
- Have you got all the help you qualify for? Even with the Price Cap at much lower levels than during the energy crisis, prices are still be unaffordable for many. Check our Struggling to pay – energy help guide to ensure you're getting all the help you're entitled to.
- Try to cut your usage. There are lots of ways to reduce what you use. See our Energy saving tips, the Energy mythbusters guide for less clear-cut issues, and our Heat the human guide.
- Some could get free insulation or a grant to replace an old boiler. The Government expanded the eligibility criteria for free insulation in 2023, meaning you don't necessarily need to be on benefits to take advantage of the scheme. Our Great British Insulation Scheme guide has more on what's available.
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