What is the energy price cap and how does it affect my bill?

The energy price cap is a limit set by Ofgem on the maximum unit rate and standing charge that suppliers can charge customers on standard variable and default tariffs. It does not cap your total bill – your costs still depend on how much energy you use – but it does limit the price you pay per kWh and the daily standing charge. When the price cap goes up, your unit rates are likely to increase, and when it falls you should see your rates reduce, especially if you are on a default or standard variable tariff.

What is the latest energy price cap prediction?

Current industry forecasts suggest that the energy price cap is likely to change in the coming months in line with wholesale gas and electricity prices. Analysts monitor wholesale markets and Ofgem announcements to predict whether the cap will rise or fall. While the exact figures can change at short notice, most predictions focus on the next scheduled cap review date and indicate whether typical annual costs for a dual fuel household are expected to increase, decrease, or remain broadly flat. For the most accurate and up-to-date prediction, always check the latest update on this page or on Ofgem's website before making a decision about your tariff.

Should I fix my energy tariff or stay on the price cap?

Whether you should fix your tariff or stay on a price-capped variable tariff depends on your risk appetite and price cap forecasts. Fixing can give you price certainty for 12–24 months and protect you from potential future price cap rises, which can help with budgeting. However, if predictions show the price cap is likely to fall, a long fixed tariff could leave you paying more than necessary. A common approach is to compare any fixed deal you are offered with current and forecast price cap levels over the same period, factoring in exit fees, your annual usage, and whether you value stability over the chance of lower future prices.

How often does Ofgem update the energy price cap?

Ofgem reviews and updates the energy price cap regularly, based on wholesale energy prices, network costs, policy costs and supplier operating costs. The cap is set in advance for a fixed period and then adjusted at each review date. This means your unit prices can change several times a year if you are on a standard variable or default tariff. Keeping an eye on upcoming review dates and independent price cap predictions can help you decide when to switch, fix, or stay on your current tariff.

How can I reduce my energy costs while the price cap changes?

You can lower your overall energy costs even when the price cap is rising by combining tariff choices with efficiency measures. First, compare tariffs to ensure you are not overpaying compared with the current price cap or competitive fixed deals. Then cut usage by improving insulation, upgrading to efficient appliances, adjusting thermostat settings, and reducing wasted energy in your home or business. Submitting regular meter readings or using a smart meter also ensures your bills reflect actual usage rather than estimates. If you are struggling to pay, contact your supplier early to discuss support schemes and payment plans.

Can switching supplier save me money if prices are capped?

Yes. The price cap limits the maximum unit rate and standing charge for standard variable and default tariffs, but suppliers are free to offer tariffs below the cap. By switching, you may access cheaper fixed or special-rate deals, better customer service, or tariffs that reward low or off-peak usage. Comparing your current unit rates and standing charges with offers in the market – including any exclusive online or direct debit discounts – can reveal meaningful savings, especially if your existing tariff is close to the cap level. Always consider exit fees and contract length before you switch.

UK Energy Price Cap Predictions & What They Mean for Your Home Bills

Understand how the Ofgem price cap is changing, how much your home gas and electricity could cost, and what you can do to keep control of your bills.

What Is the Energy Price Cap & Why It Matters

The energy price cap is a limit set by Ofgem on the unit rate (price per kWh) and the daily standing charge that suppliers can charge customers on standard variable tariffs in England, Scotland and Wales. It is not a cap on your total bill, but on the rates you pay for each unit of energy.

Your actual bill will still depend on how much gas and electricity your household uses. If you use more energy, you will pay more, even when the cap falls.

Applies to: most homes on standard variable or default tariffs
Doesn’t apply to: fixed-rate deals, some specialist tariffs and pre-payment meters with different rules
Reviewed regularly: Ofgem updates the cap multiple times a year based on wholesale costs and other factors

The cap is designed to protect households from unfair prices, but it still moves up and down with the cost of buying energy on the wholesale market.

Latest UK Price Cap Predictions for Home Energy

Industry forecasts suggest that the price cap will continue to move both up and down in 2025 as wholesale gas and electricity prices remain volatile. Analysts look at a range of data, including global gas markets, storage levels in Europe, geopolitical risk and UK policy changes.

While exact figures change as new information becomes available, most independent predictions indicate:

Short-term: modest fluctuations from one cap period to the next, rather than the steep spikes seen in 2022
Medium-term: bills may remain higher than pre-2021 levels, even if they fall slightly from recent peaks
Regional variations: standing charges and unit rates can vary slightly between regions

Remember, these are predictions, not guarantees. Ofgem will confirm each new cap a few weeks before it takes effect. We keep this page regularly updated so you can see how future cap announcements could affect your home energy bills.

How Often Does Ofgem Change the Price Cap?

Ofgem has moved to updating the price cap multiple times per year so it can respond more quickly to changes in the energy market. Each new cap runs for a fixed period and sets the maximum unit rates and standing charges suppliers can charge most households on a default tariff.

This means your bills can change several times during the year, even if you haven’t switched supplier or changed tariff. Understanding when these changes happen can help you plan ahead.

What the Price Cap Means for Your Home Energy Bills

When the price cap falls, unit rates and standing charges go down, which can reduce your bill if your usage stays the same. When the cap rises, your rates increase and your bill is likely to go up unless you cut your consumption.

For a typical medium-usage household, price cap changes can add or remove hundreds of pounds per year from your energy bill. The impact on your home depends on:

Your tariff type – standard variable vs fixed
Your energy usage – number of people at home, heating habits, efficiency
Whether you use gas, electricity, or both
Your home’s insulation and heating system

Even with the cap in place, the easiest way to protect yourself from higher bills is to use energy more efficiently and move to a better-value tariff when it makes sense.

Should You Fix Your Energy Prices or Stay on the Price Cap?

One of the biggest questions for UK households is whether to stay on the capped default tariff or fix prices for 12–24 months. There is no single right answer; it depends on your risk tolerance and the deals available.

When a Fixed Tariff Might Be Worth Considering

You want bill certainty and prefer to avoid surprises if the cap rises.
You find a fixed tariff that is at or below the current cap rates.
You value stability over potentially saving a little more by staying variable.

When Staying on the Price Cap Might Make Sense

Analysts expect the cap to fall or remain stable in the next periods.
Fixed tariffs are currently significantly above the cap rate.
You are comfortable with some up and down movement in your bills.

Before you decide, compare how much you would pay on your current tariff vs a new fixed-rate deal. Carefully check exit fees and contract length.

How to Reduce Your Home Energy Bills Whatever the Price Cap

Even when the price cap is high, there are practical steps you can take to cut your energy costs without sacrificing comfort.

1. Improve Your Home’s Energy Efficiency

Insulate your loft, walls and hot water cylinder to cut heat loss.
Fit draught excluders, seal gaps around doors and windows, and close unused rooms.
Install smart thermostats and thermostatic radiator valves to heat only the rooms you need.
Upgrade to LED lighting and efficient appliances where possible.

2. Use Your Heating System Smarter

Lower your thermostat by 1°C; this can reduce heating costs by around 5–10%.
Use heating schedules rather than leaving the heating on all day.
Bleed radiators so they heat efficiently and consider balancing your system.

3. Change Everyday Habits

Shorten showers and avoid baths where possible.
Only run washing machines and dishwashers with full loads.
Avoid using tumble dryers when you can dry clothes naturally.
Turn devices off at the plug instead of leaving them on standby.

Small changes across your home can add up to a meaningful reduction in your annual bill, especially when unit prices are high.

Financial Support and Help If You’re Struggling With Energy Bills

If you’re worried about paying your gas and electricity bills, you are not alone. Rising prices have placed pressure on millions of households across the UK. There is help available:

Priority Services Register: for older people, those with disabilities or long-term health conditions.
Warm Home Discount: a rebate for eligible low-income or vulnerable households (subject to criteria).
Supplier hardship funds: some energy companies offer discretionary support schemes.
Budgeting and debt advice: independent charities can help you manage arrears and negotiate repayment plans.

If your bills are becoming unmanageable, contact your supplier as early as possible. They must work with you to agree a realistic way forward and cannot simply disconnect you without considering your circumstances.

How to Prepare Your Household for Future Price Cap Changes

While no one can perfectly predict the future price cap, you can make your home more resilient to price changes:

Understand your usage: check your annual kWh for gas and electricity on previous bills.
Submit regular meter readings: or ensure your smart meter is working correctly to avoid estimated bills.
Build an energy budget: set aside a small amount each month to smooth out seasonal peaks.
Plan efficiency upgrades: consider measures like insulation, double glazing or heating controls when your budget allows.
Review tariffs regularly: don’t assume your current deal is always best; the market changes.

By combining better information with small efficiency improvements, you can stay in control even when the cap moves.

Frequently Asked Questions About the UK Energy Price Cap

Is the price cap the maximum I will pay for my energy?

No. The price cap limits the unit rate and standing charge, not your total bill. If you use more energy, you will still pay more.

Does the price cap apply if I’m on a fixed tariff?

Fixed tariffs are usually outside the price cap. However, suppliers often use the cap as a benchmark. Always check the unit rates on any fixed deal you are offered.

Can my supplier charge more than the price cap?

Suppliers cannot charge above the cap for customers on standard variable or default tariffs covered by the scheme. If you believe you are being over-charged, contact your supplier and, if needed, raise a complaint.

How can I check if I’m on a price-capped tariff?

Check your latest bill or online account. If it shows a standard variable or default tariff, you are likely under the price cap. If you see a fixed end date and exit fees, you are probably on a fixed deal.

Is now a good time to switch energy supplier?

The right time to switch depends on current market rates, the level of the price cap and any exit fees you may have. Use up-to-date comparisons and consider how forecasts for future caps align with your budget and risk appetite.

See How Future Price Caps Could Affect Your Bill

Share a few details about your home energy usage and we’ll help you understand how upcoming price cap changes could impact your monthly costs.

Energy-Saving Checklist for UK Homes

• Check your loft and cavity wall insulation
• Fit draught excluders and seal gaps
• Install smart heating controls
• Switch to LED bulbs throughout
• Service your boiler annually
• Compare tariffs at least once a year

Need Personalised Help?

If you’re unsure how the price cap predictions apply to your home, our team can walk you through your options.

Request a Call Back No obligation advice for UK households.

Stay Ahead of the Next Price Cap Change

Sign up for updates and we’ll send you clear, jargon-free alerts when Ofgem announces a new price cap, along with simple steps to protect your household budget.

Get Price Cap Alerts

Back to Energy News

Updated on 7 Dec 2025