Ofgem has confirmed that the energy price cap will increase by 2% in the final quarter of 2025.
The change means the average household on a standard variable tariff will see bills rise by about £2.93 per month, bringing the typical annual cost to £1,755.
The latest adjustment follows a 7% fall in the cap for July–September, which reduced the typical bill to £1,720, down from £1,849 in Q2 and £1,738 in Q1.
Energy price comparison firms have warned that the latest cap increase is a “wake-up call” for households still on standard variable tariffs.
Industry estimates suggest customers could save up to £292 a year by locking into fixed deals ahead of the winter.
Richard Neudegg, director of regulation at Uswitch.com, said:
“Today’s increase confirms that households cannot rely on the regulator to cut energy rates in time for some of the coldest months in the year. This is a wake-up call for households on price cap-linked tariffs to lock in cheaper fixed rates to cover the critical winter period. Savings equivalent to £292 a year are already available compared with this incoming price cap.”
He added that higher winter usage could mean bills rise by an additional £76 per month from October to December for those who fail to switch.
Laura Hinton of MoneySuperMarket Energy said the rise was “even higher than expected” and would be “another blow to households, especially the most financially stretched.” She noted:
“From October, the energy price cap will be around 50% higher than when first introduced in 2019, with UK households paying roughly 27% more than their European neighbours. Customers who switch and fix now can protect themselves from price rises this winter.”
Currently, around two-thirds of households (66%) remain on a standard variable tariff. Hinton stressed that below-cap fixed-rate deals are available, with typical savings of £271 for those who act before the October increase.
