Energy price cap is going up from October – here’s what you need to know

From 1 October to 31 December 2025, the independent energy regulator, Ofgem, is making a small change to the energy price cap—it’s going up by 2%. That works out to about £2.92 more per month, or around £35 more per year for most households.

What is the energy price cap?
The price cap is the maximum amount your energy supplier can charge you for each unit of gas and electricity. It also affects your daily standing charge - that’s the fixed fee you pay each day, even if you don’t use much energy.

If you’re on a standard variable tariff, the cap applies to you—whether you pay by direct debit, standing credit, a prepayment meter, or an Economy 7 meter (the one with cheaper night rates).

Why is the price cap going up?
There are a few reasons for this including higher government costs, increased gas network expenses and lower energy demand - which means the fixed costs of running the system are spread across fewer users—making the cost per unit go up.

The price cap is there to make sure energy prices stay fair and reasonable for customers.

How can you keep your bills down?
We know that every penny counts, especially when prices go up

The Energy Saving Trust has shared 10 ways to cut energy costs - plus how much you could save each year by doing them:

• Draught-proof your windows and doors – Save up to £85 per year
• Avoid using your tumble dryer – Save around £50 per year
• Take shorter showers – Save about £45 per year
• Switch off standby devices – Save £45 per year
• Insulate your hot water tank – Save £40 per year
• Boil only what you need and fit a tap aerator* – Save £30 per year
• Wash your clothes on cooler settings – Save £27 per year
• Only run the dishwasher when full – Save £11 per year
• Swap baths for showers – Save £10 per year
• Turn off your lights when not in use – Save £8 per year

*A tap aerator is a small attachment that mixes air into the water stream, creating a consistent flow while reducing the total volume of water used.

Every small change can make a big difference! Visit Energy at home - Energy Saving Trust for more info.

Need some help?
If you’re worried about your energy usage or struggling with your bills, we’re here to help - whether it’s practical advice, support, or just talking through your options. Give our friendly team a call on 0300 323 0011 or email us at customer@moat.co.uk.