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Ofgem has announced a 6.4% increase to the energy price cap starting 1 April 2025, raising the average annual household energy bill to £1,849 – up £111 from current rates.

This marks the third consecutive quarterly increase, driven primarily by rising wholesale gas prices across Europe and inflation.

The energy price cap does what it says on the tin – it’s a cap or limit on the amount that energy suppliers in the UK can charge for domestic electricity and gas. Although it’s often quoted as a monthly or annual cost, the cap is actually on the per-unit cost of energy. Your own bill is still based on usage. Average household usage for different-sized homes is used to estimate what individual bills will be.

The cap applies to all Standard Variable Tariffs in the UK. It doesn’t apply to you if you are on a fixed-rate tariff. Standard variable tariffs used to be the most expensive way to get your energy, but the energy crisis and price cap now mean that these are the best value tariffs available.

Read more about the Ofgem Energy Price Cap here

As energy bills are based on usage, the best way to lower your bills is to reduce the amount of energy you use at home. We’ve published more than 100 tips to help you save energy on your heating, cooking, laundry and more. 

You can also save on your bills by switching to paying by direct debit. 

The UK government is no longer offering support with household energy bills directly. The energy price cap has fallen since the height of the UK energy crisis, bringing bills down for millions of households. 

Some energy suppliers also offer support to customers who are struggling to pay their bills.