UK Home Energy Price Cap – December 2025 Update
Stay on top of the latest Ofgem price cap changes, understand what they mean for your home energy bills, and see how much you could save by switching.
What is happening to the UK home energy price cap in December 2025?
Ofgem’s home energy price cap limits the unit price that suppliers can charge most households on standard variable and default tariffs for gas and electricity. The cap is reviewed regularly to reflect wholesale energy costs, network charges and government policy costs.
As we move into December 2025, many households across England, Scotland and Wales are asking one question: will my gas and electricity bills go up or down? This page explains how the latest price cap level affects a typical home, what it means for your monthly direct debit, and the steps you can take now to protect yourself from future price rises.
Remember, the price cap is not a limit on your total bill. It caps the unit rate you pay for each kWh of energy and your daily standing charge. Your final bill will still depend on how much energy your household uses.
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Share a few details about your home and we’ll help you explore cheaper, greener energy options.
How the December 2025 price cap affects a typical household
Ofgem bases its “typical” bill on average dual fuel use for a direct debit customer. Your own bill will be higher or lower depending on your home, how many people live there and how efficiently you use energy.
Under the December 2025 energy price cap level in Great Britain:
- Unit rates for electricity and gas remain closely linked to wholesale market prices.
- Standing charges – the fixed daily fee just for being connected – continue to make up a bigger share of low-usage households’ bills.
- Households on prepayment meters are still protected by the price cap, but may face slightly different unit rates and charges.
Whether the cap has risen, fallen or held steady compared with previous months, the key message is the same: you are not locked in. You can usually move to a different tariff or supplier if you find a better deal that suits the way your home uses energy.
Price cap vs. fixed home energy tariffs
The price cap mainly affects customers on standard variable or default tariffs. These tariffs follow the cap up and down. A fixed tariff instead locks in your unit rates for a set period (typically 12–24 months).
In times of price volatility, many households prefer the certainty of a fixed deal, even if it is slightly higher than the current cap level, to protect against future rises. On the other hand, if you think wholesale prices will fall, staying on a price-capped variable tariff might give you more flexibility.
When considering a move away from the price cap, always check:
- Exit fees for leaving your current tariff early.
- Whether the new tariff is fixed or variable, and for how long.
- Unit rates and standing charges, not just the quoted “typical bill”.
Who is covered by the home energy price cap?
The Ofgem price cap in December 2025 protects most domestic customers in Great Britain who are on:
- Standard variable or default tariffs (including “deemed” tariffs when you move home).
- Prepayment meter tariffs (with separate but similar protections).
The price cap does not usually apply to:
- Fixed rate tariffs where you have agreed to set prices for a period.
- Special tariffs that include extra services or benefits.
- Most business energy contracts.
If you are unsure whether your household is protected by the price cap, check your latest energy bill or online account dashboard, or speak directly with your supplier.
Steps you can take now to cut your home energy bills
While you cannot control the Ofgem price cap, there is a lot you can do in December 2025 to reduce what you pay for heating, hot water and electricity at home. Even small changes can add up over the winter months.
1. Review your current tariff
Log in to your online account or grab your recent bill and make a note of:
- Your tariff name and whether it is fixed or variable.
- Your unit rates (pence per kWh) for gas and electricity.
- Your daily standing charges.
- Your annual or monthly usage in kWh for each fuel.
With this information, our experts or partner services can check whether you are better off staying on the price-capped tariff or moving to an alternative tailored to your home.
2. Improve your home’s energy efficiency
The cheapest unit of energy is the one you do not use. Improving your home insulation, heating controls and lighting can quickly reduce your usage, especially in winter.
- Loft and cavity wall insulation help keep warmth in, cutting heating demand.
- Smart thermostats and zoned heating let you heat only the rooms you use.
- LED lighting uses a fraction of the electricity of older bulbs.
- Simple draught-proofing of doors and windows can reduce heat loss.
Some households may qualify for grants or support schemes to improve efficiency or upgrade their heating system. It is worth checking what is available in your local area.
3. Consider low-carbon home energy options
As the UK continues its transition towards net zero, there is growing support for households to move to greener technologies that can reduce both bills and carbon emissions over the long term.
Depending on your property, you may be able to explore:
- Solar PV panels to generate your own electricity.
- Home battery storage to make better use of cheap or self-generated electricity.
- Air source or ground source heat pumps as an alternative to a gas boiler.
- Smart time-of-use tariffs that reward you for using energy off-peak.
These solutions typically require upfront investment but can shield you from future price cap changes and wholesale price shocks, while also reducing your home’s carbon footprint.
4. Make sure you are paying in the best way
Most suppliers offer their lowest prices to customers who pay by monthly direct debit and manage their account online. If you currently pay on receipt of bill or quarterly by cash or cheque, switching payment method can reduce your annual costs.
Also check that your direct debit amount reflects your actual usage. If you have recently made efficiency improvements or changed your household size, your payments may be higher than they need to be.
Frequently asked questions about the December 2025 price cap
Does the price cap guarantee my bill will not rise?
No. The price cap limits the price per unit of gas and electricity your supplier can charge on standard variable tariffs, not your total bill. If you use more energy, your bill will still increase.
How often will the price cap change after December 2025?
Ofgem regularly reviews the price cap based on wholesale market conditions and other costs. Future changes may raise or lower your unit rates. Keeping an eye on updates helps you decide whether to fix your prices or remain on a variable tariff.
Can my supplier charge more than the price cap?
For standard variable and default tariffs covered by the cap, suppliers cannot charge more than the regulated maximum for unit rates and standing charges. However, fixed or special tariffs that you choose separately are not normally capped in the same way.
What if I am struggling to pay my home energy bills?
If the December 2025 price cap level still leaves you unable to afford your bills, contact your supplier as soon as possible. They may offer:
- Payment plans or temporary payment holidays.
- Hardship funds or grants.
- Advice on how to reduce your usage and access wider support.
You can also seek independent advice from consumer bodies and charities that specialise in energy and debt support.
Take control of your home energy bills today
The December 2025 UK home energy price cap is just one part of the picture. By choosing the right tariff, improving your home’s efficiency and exploring low-carbon options, you can reduce your bills and gain more certainty over what you pay.
Share a few details about your property and we’ll help you understand your options, from better tariffs to smarter home energy upgrades.
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