From 1 April 2025, energy bills increased by 6.4% to an average £1,842.
From 1 July 2025, average energy bills will fall by 7% to £1,720. Average energy bills will continue to be 10% higher (almost £150) than this time last year. Reductions vary across standing charges and unit costs. Gas standing charges and unit rates will fall 9%. Electric standing charges are down 4.5% and unit costs down 5%. Ofgem saying the falls in standing charges are driven by suppliers’ operating costs coming down.
Energy prices are still 65% (almost £700) above winter 2020/21 levels and a third higher (around £450) than pre-Ukraine invasion, but people have less ability to pay these high prices after so many years of high bills and the wider cost of living crisis.
The price cap affects around 35 million customers accounts on standard variable tariffs (SVTs), including around 7 million prepayment meter accounts (PPMs) and 8 million Standard Credit rate accounts (which are more expensive).
The price cap limits the unit cost of energy and standing charges which firms can charge, not the total bill. If you use more energy than average you will pay more than this figure.
Therefore it is useful to look at the cost of a unit of energy and the daily standing charge and compare this over time:
It also enables us to calculate how much “extra” the average household has had to pay for their energy. This takes into account any Government support.
Tables being updated
The average household headline rate over time shows the current state of play:
The market for fixed term deals is improving, but those with high exit fees should be treated with suspicion. Customers should also exercise caution when opting for a deal with no or low standing charges as these may be passed on still via higher unit costs.
Britain’s broken energy system continues to cause misery, with fuel poverty affecting many of the most vulnerable. Over 8 million adults lived in cold damp homes and official figures showed that cases of hypothermia surged and every year we see deaths caused by living in cold homes.
Other inequalities in the energy market remain with customers paying by standard credit (i.e. paying by cash, cheque or bank transfer) hit with a significant price premium.
Meanwhile some regions, such as Merseyside and North Wales will pay substantially more than others, such as those in the East Midlands.
To end the energy bills crisis, we need:
- More government help with energy bills to stop people being pushed into poverty this winter.
- Government investment in schemes to provide effective insulation and new efficient heating systems in homes to cut bills in the medium term.
- Rapidly expanding cheap, sustainable renewable energy to lower bills permanently.
- Saying “no” to new oil, gas and hydrogen for homes developments so we’re not locked into expensive fossil energy for longer than necessary.
Full Price Cap History data (End Fuel Poverty Coalition records) are available to media on request.