Gas and electricity bills are set to rise again by 6.4% from April as the new energy price cap kicks in. This is now the third consecutive increase - how much more will you pay?
The price cap, which sets a maximum rate per unit and standing charge that can be billed to customers for their energy use, will now rise by £9.25 a month, over the three-month period.
For the average household paying by direct debit for gas and electricity, bills will rise by £111 per year to £1,849 per year, between April and June.
Bills will be 9.4% higher than they were between April and June 2024, when the average household paying by direct debit for dual fuel paid £1,690 per year.
It is 22% (£531) lower than at the height of the energy crisis at the start of 2023, when the Energy Price Guarantee was in place.
Jonathan Brearley, CEO of Ofgem, said: “We know that no price rise is ever welcome, and that the cost of energy remains a huge challenge for many households.
“But our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills, which is why it’s more important than ever that we’re driving forward investment in a cleaner, homegrown system.
“Energy debts that began during the energy crisis have reached record levels and without intervention will continue to grow. This puts families under huge stress and increases costs for all customers. We’re developing plans that could give households with unmanageable debt the clean slate they need to move forward.”
Brearley said Ofgem welcomed the government’s support for these plans, and their consultation on potentially expanding the £150 Warm Home Discount scheme.
While most households will see a reduction in standing charges from April 1, some regional variation remains, which means some will see a small increase of up to £20 per year for a typical dual fuel consumer.
How much will I pay for energy bills?
We list how the energy price cap per unit and standing charge will change from April in the table below.
Swipe to scroll horizontally
Electricity and gas unit prices and standing charges
Header Cell - Column 0
Energy price cap per unit and standing charge
Energy price cap per unit and standing charge
Row 0 - Cell 0
1 January to 31 March 2025
1 April to 30 June 2025
Electricity
24.86 pence per kWh
60.97 pence daily standing charge
27.03 pence per kWh
53.80 pence daily standing charge
Gas
6.34 pence per kWh
31.65 pence daily standing charge
6.99 pence per kWh
32.67 pence daily standing charge
Figures are rounded to two decimal places and are based on the England, Scotland and Wales average for people who pay by Direct Debit. Figures include 5% VAT.
How can I reduce my energy bills?
Customers are being urged to review their energy options and consider the best plan for them.
Ofgem is encouraging people to search for the best deal and consider switching to a new supplier or fixing with their existing supplier. At the time of writing, there are several fixed, direct debit tariffs tracking below the April price cap, which could offer around £50 of savings compared to the upcoming price cap level.
Brearley, of Ofgem, added: “If anyone is worried about paying their bills, I would urge them to reach out to their supplier to make sure they’re getting all the help they can. Where possible, switching or fixing tariffs now could also help to bring costs down and provide certainty over coming payments.”
Four million customers have moved to a fixed tariff since Ofgem’s last price cap announcement in November 2024.
There are now 11 million people on a fixed deal.
Gareth Kloet, spokesperson for Go.Compare energy, said: “It’s well worth researching the deals available as there are many options out there, and some could save you money – whether you decide to opt for a fixed-rate tariff so you aren’t affected by energy price fluctuations, or you opt for a variable rate.
“We recommend looking closely at your contract before making a change, as your current energy provider may charge you an exit fee and this will need to be taken into consideration when working out any potential savings – though it may still be worth switching.
“Take time to look at your current tariff, your average energy use and your monthly costs and look on a comparison website to see if a cheaper option is available.”
Taking a meter reading at the start of each month, even if you have a smart meter, also comes recommended, to ensure energy usage is as accurate as possible.
Go.compare suggested some tips to reduce energy costs:
Reduce unnecessary energy use
Changing when you run appliances such as washing machines and dishwashers to outside of peak hours, when electricity prices may be higher, could save you money.
Invest in a smart thermostat
A smart thermostat may help you control heating costs by adjusting temperatures automatically.
Review your tariff
Billpayers might want to look at switching from a flexible tariff to a fixed-rate plan if they’re worried about price fluctuations.
Switch suppliers
Compare energy tariffs to find the best deal for your needs. Switching suppliers could lead to a cheaper rate or better service.
Upgrade to energy-efficient appliances
Opting to use appliances that need a minimal amount of energy can cut costs. Likewise, ensuring the property is well-insulated to prevent heat loss comes recommended. Simple actions like switching off lights when not in use or using energy-saving bulbs can make a difference.
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Jessica is a financial journalist with extensive experience in digital publishing.
She was previously Digital Finance Editor at GB News and Personal Finance Editor at Express.co.uk. She enjoys writing about savings, pensions and tax, and is passionate about promoting financial education.
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