What is the energy price cap?

The energy price cap limits the price of a single unit of energy for customers paying for variable energy tariffs.

Under the price cap, typical energy bills for a medium use household are currently around £1,849 per year, or - more helpfully as it's only in place for three months - £154 per month. This is in place from April to June 2025.

The price cap will drop by 7% on 1 July and remain in place until the end of September. This means that medium use households on varaible tariffs will pay around £1,720 a year or £143 per month during those three months. 

The price cap is not a limit on your total bill. It restricts the price per unit (or kWh) that energy companies can charge. You can find the average rates below.

Your total bill depends on how much electricity and gas you use.

Use our free, independent energy comparison service to compare gas and electricity prices and find the best provider for you. 

Are you on the energy price cap?

The price cap was introduced by Ofgem in 2019 to ensure fair prices for customers who don’t actively switch energy provider to make the most of deals.

It only affects standard variable tariffs (SVTs) - also known as standard, default or out-of-contract tariffs. You might also see them described as rolling or flexible tariffs.

Because competitive fixed deals have been limited in recent years, many households are currently paying variable rates for their energy. 

According to the latest figures from Ofgem, as of 1 April 2025, 65% of customers were on SVTs and 35% of customers on fixed contracts. This compares to 72% of customers on SVTs on 1 January 2025, and 85% the previous year (1 April 2024).

Thinking of fixing a tariff instead? Find out how to get the best energy deal or use our energy comparison service to compare gas and electricity prices. 

How much is the current energy price cap?

The price cap is not a cap on your payments, but a limit on the amount that suppliers can charge for each unit of energy you use and your daily standing charge. 

Between 1 April and 30 June 2025 the average unit rates are as follows:

For direct debit customers:

• Electricity: 27.03p per kWh with a standing charge of 53.80p per day
• Gas: 6.99p per kWh with a standing charge of 32.67p per day

If you have a prepayment meter, you pay the same standing charge as direct debit customers, but slightly lower rates per kilowatt hour:

• Electricity: 26.20p per kWh with a standing charge of 53.80p per day
• Gas:  6.78p per kWh with a standing charge of 32.67p per day

This works out as £46 lower than the direct debit cap level.

If you pay when you receive your bills, your rates are the most expensive:

• Electricity: 28.45p per kWh with a standing charge of 59.60p per day
• Gas:  7.35p per kWh with a standing charge of 37.57p per day 

These are the average prices across England, Scotland and Wales. Your exact rates will depend on where you live.

How providers split the unit rate and standing charge is up to them, and dependent on the region you live in, but the total cost cannot be higher than the cap.

The widely reported figure for the price cap (e.g. £1,849 for April to July 2025) is an illustration based on what it might cost over a year, if rates stayed the same, for a household using a medium amount of energy, defined as 11,500kWh of gas and 2,700kWh of electricity per year. This means your bills might look very different depending on your circumstances.

We've run this electricity price through our appliance test data to show you how much your household appliances will cost to run.

Are energy prices going down in July 2025?

The price cap is adjusted every three months. 

The price cap will decrease by 7% on 1 July 2025.  

Between 1 July and 30 September 2025 the average unit rates are as follows:

For direct debit customers:

• Electricity: 25.73p per kWh with a standing charge of 51.37p per day
• Gas: 6.11p per kWh with a standing charge of 29.82p per day

If you have a prepayment meter, you pay the same standing charge as direct debit customers, but slightly lower rates per kilowatt hour:

• Electricity: 24.92p per kWh with a standing charge of 51.37p per day
• Gas:  6.78p per kWh with a standing charge of 32.67p per day

This works out as £46 lower than the direct debit cap level.

If you pay when you receive your bills, your rates are the most expensive:

• Electricity: 27.18p per kWh with a standing charge of 59.26p per day
• Gas:  6.68p per kWh with a standing charge of 37.70p per day 

Find out more about: the energy price cap increase from July 2025

Ways to reduce energy bills

Any cutbacks you can make to your energy usage could help soften the blow of increasing bills. Some ways to do this are:

• Lowering your combi boiler's flow temperature – This small tweak can lower your gas bills while still keeping your home warm. Find out how to adjust your boiler flow temperature.
• Turning down thermostatic radiator valves in unoccupied rooms – Keep the heat you generate in the rooms that need it so that your central heating isn't on for as long. 
• Heat the person, not the home – This isn't possible for all households, but if you are able to, it's usually cheaper to heat yourself rather than the whole house. Look for electric blankets and heaters for quick bursts. 
• Only use white goods efficiently – Try to only put your washing machine and dishwasher on when they're full and use eco settings where possible. Washing at 30^oC or below is usually more energy efficient than hot washes.
• Add loft insulation and draft proofing – Improving your loft insulation is a good way to make your home feel cosier in the winter months and bring down your bills. Draft proofing can be a cheap way to get started.
• Improve your home's energy efficiency – For advice personalised to your home, check how you could make energy saving improvements with our free home energy planning service.  

When it comes to your payments, you might be able to make small savings by opting for paperless bills and managing your account online (as some suppliers charge extra for paper bills). Getting a smart meter installed, or sending regular meter readings, will ensure your bills are accurate. 

Find out more about ways to save on your energy bills and how to get help if you are struggling to pay your energy bills