On Tuesday 1 July 2025 Ofgem’s price cap is going to change. This happens once every three months, Ofgem made the announcement in the last week of May that the price cap will fall from the current £1,849 down to £1,720 for the period 1 July to 30 September 2025.
These figures are illustrative of an average medium usage household, the actual price drop is around 7% on what you’re currently paying. You should also note that the new price cap will run over the warmer months of the year, from July to September, which is typically when our annual usage is lowest, so you’ll not be using much gas or electric anyway.
The price cap isn’t a maximum bill, it’s a maximum that suppliers can charge for gas and electricity unit rates and standing charges, this means that if you use more energy then your bill can be higher than the price cap £1,720 per year figure. The exact rate changes are below.
| Price Cap 1 Apr to 30 Jun | Price Cap 1 Jul to 30 Sep | |
| Elec Standing Charge | £0.538 per day | £0.5137 per day |
| Elec Unit Rate | £0.2703 per kWh | £0.2573 per kWh |
| Gas Standing Charge | £0.3267 per day | £0.2982 per day |
| Gas Unit Rate | £0.0699 per kWh | £0.0633 9er kWh |
Control your bills:
Energy Price Comparison* – Compare, Switch and Save over £250 per year
Car Insurance Price Comparison* – Save up to £523 per year
Broadband Price Comparison* – Broadband from as cheap as £19 per month
Boiler Insurance* with Home Emergency Assist – 35% off – Use code: REGULATORGUY
Who does this affect?
The Ofgem price cap is a MAXIMUM amount that suppliers can charge customers that are not on a fixed rate contract. Currently, around 70% of households in the UK are being “protected” by the price cap. What this actually means is that around 70% of the UK are paying the highest amount an energy supplier can charge them.
If you’re already on a fixed rate tariff, then your bills will not change, the price cap doesn’t affect you. If you’re on any of the following tariff names, then you’re likely on your supplier’s price cap (most expensive) tariff:
- British Gas: Standard Variable Tariff
- EDF: Standard (Variable) Tariff
- E.ON Next: Next Flex
- OVO: Simpler Energy
- Octopus: Flexible Octopus
- Scottish Power: Standard Variable Tariff
- First Utility (Shell Energy): Standard Variable Tariff
If you’re on any of these tariffs then you will see your energy bill reduce from 1 July, but you’ll still be paying the highest amount, as there are even cheaper fixed rate tariffs available in the market at the moment.
What are the best energy deals available?
At the moment, there are two options available, and both are with E.ON Next, but it depends on your type of risk tolerance.
- E.ON Next Fixed 12M v65 – Roughly £80 cheaper (c. £1,640) than July’s Price Cap
- E.ON Next Pledge Tracker 12m V8 – £100 cheaper than the price cap for a whole year, it will rise and fall with the cap but always be £100 lower
The first link takes you to Free Price Compare, the second to Uswitch. The E.ON Tracker tariff is interesting, but in my opinion it is not great. That’s because it might save you a little money over the summer moneys (literally like £5 a month), but it will raise when the price cap rises. Usually the price cap rises in both October and January of each year, and experts are predicting that the cap will go back up to current levels. So, the E.ON Fixed v65 might only be £80 cheaper than the July price cap, but the Fixed tariff will stay at the same price for the next 12 months, so if the cap does go back up to c.£1,850 in October then this fixed tariff will be c.£210 cheaper than the Autumn Price Cap.
So, my advice as always, is move to a fixed rate tariff, save yourself some money!
Control your bills:
Energy Price Comparison* – Compare, Switch and Save
Car Insurance Price Comparison* – Save up to £523 per year
Broadband Price Comparison* – Broadband from as cheap as £19 per month
Boiler Insurance* with Home Emergency Assist – 35% off – Use code: REGULATORGUY
