Energy price cap will RISE to £1,755 from October: act now to save

Energy bills will rise by 2% for millions of households in October, according to the latest announcement by the energy regulator Ofgem.

From 1 October to 31 December 2025, households using a typical amount of energy could pay up to £1,755 per year. That’s up £35 from the July price cap of £1,720.

The increase is more than double the £17 increase to £1,737 per year that industry analysts initially predicted.

It comes as households are already facing higher-than-expected living costs with July inflation hitting 3.8% – its highest level in 18 months.

Ofgem says the price cap increase is partly due the higher cost of transporting energy to customers and extra support measures for vulnerable customers, such as the Warm Home Discount.

The energy price cap sets the maximum amount that suppliers can charge households for each unit of gas and electricity they use.

It’s important to note that the price cap doesn’t limit the size of your actual bill. This will be determined by the amount of energy you use.

Ofgem sets the cap every three months and it applies to millions of households in England, Scotland and Wales.

How can you save on energy bills?

Check your tariff: if you’re on a standard variable tariff or your fixed-rate tariff is due to end before October 1, switching onto a fixed-rate tariff can help you cut the cost of your energy.

1. Shop around: price comparison websites are a great place to start. They’ll help you compare lots of energy deals quickly and help you find the best value. Remember to look out for exit fees which could make your tariff more expensive if you want to switch again before your deal ends.

2. Get energy efficient: try to reduce energy waste by switching off lights, appliances and technology when they’re not in use. Taking steps to insulate your home can also help reduce your energy costs.

3. Apply for support: check if you’re eligible for support from your energy supplier or the government to help you afford the cost of heating and powering your home.

4. Create a budget: making a budget can help you identify other areas in your life to try and make a saving. A budgeting app can help you automate the process and get started on cutting costs.

What happens if I can’t pay my energy bills?

If you’re worried that you won’t be able to pay your energy bills, it’s important to act quickly to get help.

Contact your energy supplier as soon as possible to arrange a payment plan that you can reasonably afford. Customers on a prepayment meter can request emergency credit if they’re unable to top up.

If you’re already struggling with your bills and have fallen into debt, contacting organisations such as StepChange or Citizens Advice can help