Energy Bills and the Price Cap news in 2025
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- December 2025
Guide updated with price cap based appliance running costs
Confused.com has updated its appliance running cost guide, pricing average household use against the price cap of £1,755 that runs until 31 December 2025.
Ofgem Debt Relief Scheme statutory consultation closes
Ofgem's statutory consultation on how its Energy Debt Relief Scheme will work closed on 18 December 2025, with the scheme to be delivered in two phases during 2026.
GB energy debt and arrears reach £4.55bn
Ofgem data cited by Consumer Scotland shows household energy debt and arrears in Great Britain reached £4.55bn in the fourth quarter of 2025, up £700 million in a year.
- November 2025
ECIU comments on energy price cap change for January to March 2026
The Energy and Climate Intelligence Unit says the typical dual fuel bill will rise by around 30p under the January to March 2026 price cap, a fall of £37 in real terms.
Ofgem decides to update price cap benchmark consumption to 2023 TDCVs
Ofgem has decided to update the price cap's benchmark consumption to the 2023 Typical Domestic Consumption Values from 1 January 2026, a change it says will raise the cap level by about £9 a year for a typical customer.
Ofgem sets energy price cap for 1 January to 31 March 2026
Ofgem has set the energy price cap for 1 January to 31 March 2026 at £1,758 a year for a typical dual fuel Direct Debit household, a rise of 28 pence a month.
Energy Systems Catapult publishes response to Ofgem lower-standing-charge tariff consultation
Energy Systems Catapult has backed Ofgem's plan to require suppliers to offer lower-standing-charge tariffs but says the proposal lacks a clear plan to manage risks of reduced competition and consumer harm.
Ofgem publishes Debt Relief Scheme Impact Assessment
Ofgem has published an impact assessment for its proposed Debt Relief Scheme, estimating Phase 1 would write off between £312.4 million and £472.9 million of eligible debt across 280,000 to 400,000 accounts.
Ofgem publishes detailed proposals for the Debt Relief Scheme
Ofgem has set out detailed proposals for a one-time Debt Relief Scheme to write off energy debt built up during the crisis, with phase one expected to support up to 200,000 households.
Ofgem publishes regulatory expectations for suppliers on Additional Support Credit
Ofgem has published regulatory expectations telling suppliers how they should assess and provide Additional Support Credit to vulnerable prepayment customers who have self-disconnected or are at risk of doing so.
Consumer Scotland publishes response to Ofgem consultation on lower standing charge tariffs
Consumer Scotland has published its response to Ofgem's consultation on requiring suppliers to offer at least one lower standing charge tariff, backing a temporary approach and warning of cost redistribution.
Scottish Government announces almost £1 million extra funding for energy debt advice services
The Scottish Government has allocated £944,000 in additional funding to three advice organisations to expand energy debt support, announced by Housing Secretary Màiri McAllan at the start of Talk Money Week.
RECCo submits response to Ofgem debt-related cost allowance consultation
The Retail Energy Code Company has told Ofgem that an extra allowance for debt-related costs inside the default tariff cap would raise bills for customers who pay on time.
Autumn Budget confirms end of green levy and ECO4 funding
The 2025 Autumn Budget confirmed the end of the green levy and with it ECO4 funding, closing council-run ECO4 Flex schemes and stopping new applications.
Budget announces £150 energy bill reduction
The November 2025 Budget cut energy bills by around £150 a year from April 2026, but a renewed gas price surge is expected to wipe out that saving.
Budget changes remove levies from electricity bills
Budget changes remove some levies from electricity bills, cutting the running cost of clean electric technologies, according to analysis of the Warm Homes Plan published by the charity Nesta.
Ofgem announces consultation on home-move debt processes
Ofgem has set out plans to consult later this year on trialling new home-move processes that would require customers to contact their supplier to set up an account early.
- October 2025
Committee publishes Tackling the energy cost crisis report
The Energy Security and Net Zero Committee has published a report recommending reform of the Warm Home Discount, a social tariff, an Energy Debt Relief Scheme and wider Energy Ombudsman powers.
UK household energy debt rises to eight-year high
Uswitch research published on 15 October 2025 finds UK household energy debt at an eight-year high of £780 million, with the average household owing £223 to its supplier.
Consumer Scotland responds to Ofgem standing charge consultation
Consumer Scotland has told Ofgem that a radical rethink of the standing charge should not be a priority now, backing pilots and better signposting over a mandate for lower or zero standing charge tariffs.
Ofgem opens call for input on reselling gas and electricity and the Maximum Resale Price direction
Ofgem has opened a call for input on the rules covering the reselling of gas and electricity, asking whether the Maximum Resale Price still protects consumers and supports investment.
British Gas Energy Support Fund reopens on day of 2% price cap rise
The British Gas Energy Trust has reopened its largest energy debt fund, offering grants of up to £2,000 to British Gas customers, on the day energy bills rose by 2%.
Flexi 2025 variable cost breakdown updated for the quarter from 1 October 2025
ScottishPower has updated the quarterly breakdown of variable costs inside its Flexi 2025 tariff from 1 October 2025, with Balancing Services Use of System rising on the single rate electricity table.
Ofgem price cap for October to December 2025 set at £1,755 GB average on new TDCVs
Ofgem's price cap for 1 October to 31 December 2025 stands at £1,755 a year for a typical dual fuel household on direct debit, with electricity unit rates up and gas unit rates down.
Ovo Energy Extra Support Package opens
Ovo Energy's £56m Extra Support Package opened on 1 October 2025, offering eligible customers emergency top-up, payment reductions, extended repayment plans and free energy-saving products.
Price cap operating cost allowance in place until October 2025
Ofgem has set new operating cost and debt allowances for the energy price cap, cutting the average customer bill by £8, with the allowances in place until October 2025.
- September 2025
Citizens Advice responds to Ofgem's price cap benchmark consumption review consultation
Citizens Advice has agreed with Ofgem's minded-to proposal on reviewing the benchmark consumption values behind the energy price cap, while calling for clarity on how headroom allowances are assessed.
Energy Saving Trust publishes response to Ofgem standing charges consultation
The Energy Saving Trust has answered Ofgem's consultation on prepayment meter standing charges and other debt costs, calling for a social tariff and fairer regional charges.
Energy debt and arrears climbs to £4.43 billion in Q2 2025
Ofgem figures show household energy debt and arrears reached £4.43 billion in the second quarter of 2025, up nearly £300 million on the previous quarter and £0.74 billion on a year earlier.
Power NI announces 4% residential tariff increase from 1 October 2025
Power NI will raise its residential unit price by 4% from 1 October 2025, adding about 11p a day for an average household, after the Utility Regulator approved the change.
Citizens Advice responds to Ofgem's technical working paper on the Debt Relief Scheme
Citizens Advice has responded to Ofgem's technical working paper on the proposed Debt Relief Scheme, backing its aims and phased rollout but seeking clarity on eligibility and faster consultation on phase two.
Consumer Scotland responds to Ofgem's Debt Relief Scheme policy update working paper
Consumer Scotland has told Ofgem it broadly supports the proposed eligibility criteria for the Energy Debt Relief Scheme, while urging changes on smart meters, warm referrals and supplier reimbursement.
Green Alliance publishes report making the case for a social tariff to address fuel poverty
Green Alliance has published a report modelling three social tariff designs, arguing percentage discounts on gas and electricity bills would support fuel poor households better than the Warm Home Discount.
Ofgem statistics show record total energy debt of £4.43bn
Ofgem statistics show total energy debt reached a record £4.43bn, three-quarters of it arrears without a payment plan, as the price cap rose 2% on 1 October.
- August 2025
ECIU analysis finds poorly insulated homes £570 worse off under price cap
Analysis from the Energy and Climate Intelligence Unit finds homes rated EPC Band F pay £570 more a year than Band C homes under October 2025 price cap prices, with around half a million homes affected.
Ofgem announces 2% energy price cap rise for October to December 2025
Ofgem has raised the energy price cap by 2% for October to December 2025, taking a typical dual fuel Direct Debit bill to £1,755 a year, an increase of £35.14.
Ofgem opens consultation on price cap benchmark consumption review
Ofgem has confirmed it will update the price cap's benchmark consumption to the 2023 Typical Domestic Consumption Values from 1 January 2026, a change it says will raise the cap level by about £9 a year for a typical customer.
Ofgem opens policy consultation package on future energy prices
Ofgem has opened three policy consultations on nuclear cost recovery, acquisition-only tariffs and the cap's consumption benchmark, alongside confirming a 2% price cap rise from October.
Scottish charity THAW Orkney saves clients thousands in energy bills
THAW Orkney, part-funded by the British Gas Energy Trust, reports saving clients a collective £50,000 in energy payments and more than £116,000 in income gains in the last year.
British Gas Energy Trust reopens Individuals and Families Fund
The British Gas Energy Trust has reopened its Individuals and Families Fund, offering up to £1,700 towards energy debt for households on prepayment or credit accounts with suppliers that run no scheme of their own.
October to December 2025 price cap set at £1,755
Ofgem has set the October to December 2025 Default Tariff Cap at £1,755 a year for a typical dual fuel household, a 2% rise from July, with forecasts pointing to a slight fall in January.
Ofgem estimates cash and cheque customers pay £136 a year more on average
Ofgem reports estimate that households paying for energy by cash or cheque pay £136 a year more on average than other customers, according to guidance published in September 2025.
- July 2025
Consumer Scotland publishes response to Ofgem fair pricing consultation
Consumer Scotland has backed Ofgem's proposed fair pricing framework for heat networks but called for stronger monitoring of fuel costs, prescriptive billing rules and readiness to enforce from January 2026.
Octopus Energy price amendments
Octopus Energy amended prices on its Octopus Key and Card and Flexible Octopus tariffs, in a change recorded by the price comparison service Energylinx.
New allowances to be implemented in July 2025 cap
Ofgem has restructured the operating cost and debt allowances inside the energy price cap, cutting the total allowance by an average of £8 per customer from the July 2025 cap period.
Contact with suppliers about help paying bills reaches highest level to date
Ofgem's Energy Consumer Satisfaction Survey for July and August 2025 shows contact with suppliers about help paying bills reached its highest recorded level, at 78% of customers who fell behind.
Cornwall Insight forecasts slight fall in price cap for July to September 2025
Cornwall Insight forecasts the July to September 2025 price cap at £1,756.02 a year for a typical dual fuel direct debit household, a slight fall from the current cap of £1,849.
Energy price cap falls 7% to £1,720 for a typical household
The energy price cap fell 7 per cent on 1 July 2025, cutting the bill for a typical household paying by direct debit from £1,849 to £1,720 a year.
Float debt allowance to end in July 2025
Ofgem has concluded its first full review of the price cap's operating cost and debt allowances, cutting the total allowance by an average of £8 per customer and ending the float allowance in July 2025.
The Float ended and the enduring DRC allowance took effect
Ofgem's temporary £28 per dual fuel customer debt allowance, the Float, ended on 1 July 2025 when updated operating cost and debt allowances took effect, with a review now proposing no further adjustment.
Ofgem published a summary of responses and next steps on zero standing charge tariffs
Ofgem has set out next steps on zero and lower standing charge tariffs, saying it will consider requiring every supplier to offer one such tariff in all regions.
- June 2025
Confused.com guide updated to state the Energy Price Guarantee is no longer in effect
Confused.com has updated its Energy Price Guarantee guide to confirm the scheme is no longer in effect, with households now paying rates set by Ofgem's price cap.
Energy Price Guarantee scheme withdrawn
The government has withdrawn the Energy Price Guarantee scheme documents and confirmed the scheme is closed, ending the published record of the support that capped household unit rates from 2022.
Ofgem proposes debt relief scheme opening in summer/autumn 2025 and closing in spring 2026
Ofgem has proposed a debt relief scheme for households that built up energy bill arrears during the energy crisis, open from summer or autumn 2025 to spring 2026.
- May 2025
Ofgem publishes updated price cap levels for 1 July to 30 September 2025
Ofgem has set the default tariff price cap for 1 July to 30 September 2025 at £1,720 a year for a typical dual fuel household paying by Direct Debit, down £129 or 7% from the previous level.
Ofgem extends prepayment meter warrant protections to 30 June 2027
Ofgem has extended the licence conditions that cap warrant costs and bar forced prepayment installation in exceptional cases, keeping them in force until 30 June 2027.
- April 2025
Energy Saving Trust publishes response to future default tariffs consultation
The Energy Saving Trust has told a government call for evidence that suppliers should be obliged to place households on default tariffs that suit their circumstances, and that the default price cap should be reformed.
Citizens Advice opposes Ofgem's zero standing charge price cap variant proposals
Citizens Advice has told Ofgem it does not support proposals for a zero standing charge variant of the energy price cap, citing complexity, implementation challenges and risks of consumer harm.
Consumer debt and arrears reached a record high of £3.85 billion
Ofgem's state of the energy market report records consumer debt and arrears at a record £3.85 billion in quarter 4 2024, alongside a price cap rise to £1,849 from April 2025.
EPC band F homes could face bills around £700 higher than band C from April
Analysis by the Energy and Climate Intelligence Unit finds EPC band F homes could face average annual dual fuel bills of around £2,340 from April, roughly £700 more than band C.
Standing charges change from 1 April with regional variation remaining
Ofgem's April price cap rise of 6.4% takes effect on 1 April 2025, with standing charges falling for most households but rising by up to £20 a year in some regions.
- March 2025
Ofgem energy price cap rises 6.4% and Clean Heat Market Mechanism launches
Ofgem's energy price cap rose 6.4% on 31 March 2025, the same day the Government's Clean Heat Market Mechanism began requiring large boiler manufacturers to sell a share of heat pumps.
Price cap for average dual fuel Direct Debit households increased to £1,849
Ofgem's price cap for average dual fuel Direct Debit households rose 6.4 per cent to £1,849 a year on 1 April 2025, a third consecutive increase driven by higher wholesale costs.
Consumer Scotland responds to Ofgem consultation on zero standing charge price cap variant
Consumer Scotland has told Ofgem that a zero standing charge price cap variant risks concentrating fixed costs in winter and may only benefit a limited group of low-usage households.
Energy UK publishes report on cutting energy bills
Energy UK has published a report setting out how household energy bills could be cut over five years, calling for a national strategy led by Downing Street or the Treasury.
Octopus pauses new sign-ups to Flux and Intelligent Octopus Flux tariffs
Octopus Energy has temporarily stopped new sign-ups and switches to its Flux and Intelligent Octopus Flux tariffs, citing volatile energy prices, with forum users reporting Snug has also been withdrawn.
Social tariff working group final report shared with UK Government
A Scottish Government working group on a social tariff for energy has sent its final report and recommendations to the UK Government, which holds the powers to implement one.
- February 2025
Debt allowance extension announced
Ofgem has extended the debt allowance that supports suppliers helping customers who struggle to pay, announced alongside a 6% rise in the price cap from April 2025.
Ofgem announces energy price cap increase for April to June 2025
Ofgem has raised the energy price cap by 6.4 per cent for April to June 2025, taking a typical household bill to £1,849 a year, and the government is consulting on a wider Warm Home Discount.
Ofgem confirms extension of the price cap debt-related costs Float allowance
Ofgem has confirmed it will keep the temporary debt-related costs allowance in the energy price cap at £31 per dual fuel customer until its operating costs review takes effect or September 2025.
Ofgem opens consultation on tariff without standing charge
Ofgem has opened an industry consultation on introducing a tariff without a standing charge, announced alongside a 6% rise in the price cap for April to June 2025.
Citizens Advice responds to Ofgem consultation on energy debt relief scheme
Citizens Advice has welcomed Ofgem's proposed energy debt relief scheme but wants it simplified, focused on crisis-caused debt and financed by energy networks at zero interest rather than by consumers.
Trust publishes response to Ofgem debt relief consultation
The British Gas Energy Trust has backed a targeted one-off energy debt relief scheme in its response to Ofgem's consultation, provided it forms part of a long-term affordability strategy.
Consumer Scotland publishes response to Ofgem debt relief scheme consultation
Consumer Scotland has published its response to Ofgem's consultation on a debt relief scheme, backing a Debt Guarantee and a shorter back-billing limit for households with smart meters.
Ofgem consultation on debt relief scheme closes
Ofgem's consultation on improving debt standards and on a proposed debt relief scheme closed on 6 February 2025, with decisions intended to be in place for next winter.
Ofgem announced it would fine suppliers breaching back billing rules
Ofgem said in February 2025 that it would fine energy suppliers that keep breaching its back billing rules, which limit how far back a supplier can charge for energy used.
Ofgem announces third consecutive price cap rise for April to June 2025
Ofgem has set the April to June 2025 Default Tariff Cap at £1,849 a year for a typical dual fuel household, a third consecutive rise and the first April cap above January's since quarterly updates began.
Ofgem launched a consultation on a zero standing charge option within the energy price cap
Ofgem has opened a consultation on a zero standing charge option within the energy price cap, setting out three ways to move fixed daily charges into higher unit prices.
Ofgem ran initial consultation on Debt Relief Scheme proposals
StepChange has set out its response to Ofgem's initial consultation on the proposed Energy Debt Relief Scheme, backing automatic eligibility and questioning conditions attached to debt write-off.
- January 2025
Ofgem opens Call for Input on the gas disconnections framework
Ofgem has opened a Call for Input on the gas disconnections framework, seeking views and cost data from industry and consumer stakeholders, with responses due by 7 March 2025.
Trust highlights open energy debt grant funds for winter
The British Gas Energy Trust has highlighted two open energy debt funds offering grants of up to £2,000 to British Gas and non-British Gas customers in England, Scotland and Wales this winter.
Energy debt reaches all time high of £4.15bn
Official figures show household energy debt in Great Britain reached an all time high of £4.15bn in the first quarter of 2025, as research puts 12.1 million UK households in fuel poverty.