Will gas and electricity bills fall? 2025 energy price forecast

UK energy prices are set to drop 7% from 1 July after the latest price cap announcement, reducing bills for those on a variable rate tariff. Will bills rise or fall in the Autumn?

Smart meter displaying energy costs
(Image credit: George Clerk via Getty Images)

Energy bills are set to slide this summer in welcome news for UK households.

The price cap will be set at £1,720 per year from 1 July – a 7% drop compared to the previous cap of £1,849.

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January price cap

April price cap

July price cap

October price cap forecast

Electricity unit cost (per kWh)

24.86p

27.03p

25.73p

26.22p

Electricity standing charge (daily)

60.97p

53.80p

51.37p

55p

Gas unit cost (per kWh)

6.34p

6.99p

6.33p

6.05p

Gas standing charge (daily)

31.65p

32.67p

29.82p

34p

Typical annual household bill

£1,738

£1,849

£1,720

£1,726.58

Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.

With contributions from