Morning everyone,
Ofgem have announced that the Price Cap will increase from 1 October 2025, from the current £1,720 to £1,755, an increase of £35, or 2%. This is a year-on-year increase of £38, with the October 2024 price cap being £1,717. This shows a worrying pattern of inflation on our energy bills.
The increase comes as a shock as all experts were predicting a smaller increase, with Cornwall Insight predicting £1,737, making this increase twice as large as expected. Cornwall Insights did accurately predict the increase in the Standing Charges, but they inaccurately forecast a £16.10 decrease in Gas unit rates, whereas we’re actually going to see only a £4.60 increase in Gas unit rates.
For me, this ridiculous thing here is that we are still paying 68% more for our energy bills than we were in the winter of 2020/2021, and still 37% higher than we were just prior to the Ukraine invasion. The crisis is not over!
Here’s a breakdown of the standing charges and unit rates for gas and electricity from 1 October 2025:
- Electricity Standing Charge: 53.68p per day – an increase of 2.31p per day or £8.43 per year
- Gas Standing Charge: 34.03 per day – an increase of 4.21p per day or £15.37 per year
- Electricity Unit Rate: 26.35p per kWh – an increase of 0.62p per kWh or £16.74 per year for an average usage household (2,700 kWh)
- Gas Unit Rate: 6.29p per kWh – the only decrease, of 0.04p per kWh or £4.60 per year for an average usage household (11,500 kWh)
