From the 1st of April 2025, the energy price cap is expected to rise by 6.4%. Under the new energy price cap, the typical annual dual-fuel bill paid by direct debit will be £1,849 per year, up from £1,736 per year.
What Is The Price Cap And How Does It Work?
The price cap is based on the maximum amount an energy supplier can charge for a unit of energy and is set every three months by the regulator Ofgem. The amount is based on a typical household’s energy, calculated by average gas and electricity usage.
For the second quarter of 2025, a household paying by Direct Debit will see the cap increase to £1,849, up from January – March’s price of £1,736 a year – an increase of 6.4% on average and an extra spend of £113 per year.
If you pay upon receipt of your bill, rather than by Direct Debit or prepayment, you’ll be subject to a 6.4% rise to £1,969 a year. If you prepay for your energy, prices will rise by 6.7% to £1,803 a year.
This decision is due to rising wholesale gas prices and strong demand in recent months due to the colder weather.
On A Low Income?
You may be eligible for the Warm Home Discount, which could give you £150 towards energy costs from April. It’s available to millions of households in England, Scotland and Wales. To check if you’re eligible, read our latest blog.
Need Help With Your Energy Bill?
If you’re struggling to pay your energy bill, it might be time to get some debt advice. You can go online to get debt advice anytime using our online debt advice tool. Once you’ve filled in your details, you’ll receive an instant recommendation on your screen. Or, if you’d like to speak to an expert debt advisor via the phone, email, text or online chat, please contact us.
