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With the energy price cap being hiked again, you’re probably asking when will energy prices go down? We take a look.
AT A GLANCE
The energy price cap increased by 6.4% on 1 April 2025, taking the average energy bill to £1,849. This is on top of the increase of 1.2% on 1 January 2025, which increased the average bill to £1,738 per year.
But you can avoid these rising energy prices by shopping around and switching to a fixed energy deal. Find out instantly how much you can save with our free switching service today
Compare energy deals, see how much you can save on electricity and gas, switch provider today.
If you’re one of the 26 million households in the UK on a standard variable tariff, here’s how the gas and electricity unit rate and standing charges changed on 1 April 2025:
| OLD: Energy price cap rates from 1 January to 31 March 2025 | CURRENT Energy price cap rates from 1 April to 30 June 2025 | |
| Gas | Unit rate: av 6.34 per kWhStanding charge: 31.65p per day | Unit rate: av 6.99 per kWh Standing charge: 32.67p per day |
| Electricity | Unit rate: av 24.86p per kWhStanding charge: 60.97p per day | Unit rate: av 27.03p per kWh Standing charge: 53.80p per day |
Yes. You don’t need to accept these price hikes. It makes sense for most people to shop around and switch to a fixed energy tariff now because despite the energy price cap rising, rates on some fixed energy deals are falling. This is because the energy price cap is based on a time lag; the April to July 2025 energy price cap is based on wholesale prices in November 2024 to January 2025. And because wholesale prices have dropped, so have rates on fixed energy deals.
So consumers are urged to beat these energy bills hikes by switching energy suppliers and moving to a fixed tariff ASAP. And also to take steps to warm your home for less
Energy advice guru Martin Lewis says the cheapest fix now is around 14% cheaper than the April price cap. So see how much you can save by fixing now your energy deal now.
And it’s important to act quickly. Scott Byrom, CEO of The Energy Shop, says, ‘We’re urging ALL customers to take action and switch to a cheaper “fixed” tariff as soon as possible.’
What exactly will happen to energy prices in the longer term is subject to debate and global developments – read on for experts’ predictions on this.
Compare energy deals, see how much you can save on electricity and gas, switch provider today.
Energy prices are predicted to go down in July 2025. However any reduction in energy costs will come after a succession of price hikes, meaning that even if energy prices fall, many households may struggle to pay their energy bills.
This table illustrates how much energy prices have increased in recent months.
| Time period | Energy price cap amount |
|---|---|
| Old cap: 1 October -31 December 2024 | Up 10% to £1,717 a year |
| Old cap: 1 January – 31 March 2025 | Up 1.2% to £1,738 a year |
| Current cap: 1 April – 30 June 2025 | Up 6.4% to £1,849 |
| Predicted future cap: 1 July-31 September 2025 | Prediction Go down to £1,712 – £1,776 |
Noone knows for sure what will happen with energy prices beyond July 2025. However, while Ofgem sets the energy price cap four times a year and announces its next price cap about a month before it comes into effect, a number of energy price cap forecasts are made much further in advance:
The further ahead the forecast, the less likely it is to be accurate.
Over the past 12 months, we’ve seen a £292.07 average increase (+18.6%) compared to last July’s price cap.
UK households have been facing increased energy costs since 2022, when the conflict between Russia and Ukraine broke out. While energy costs aren’t as high as the peaks we’ve seen, energy prices are still high and unaffordable for many.
Avoid rising energy prices and save money by switching to a fixed energy deal. Find out instantly how much you can save with our free switching service today
Compare energy deals, see how much you can save on electricity and gas, switch provider today.
Making an accurate long-term energy price forecast isn’t possible. However, Jonathan Brearley, the Ofgem chief executive, explains: ‘We know that no price rise is ever welcome, and that the cost of energy remains a huge challenge for many households. But our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills, which is why it’s more important than ever that we’re driving forward investment in a cleaner, homegrown system.’
Paula Higgins, Chief Executive of the HomeOwners Alliance, says, ‘Energy bills rising yet again in 2025 is a huge blow for households who have already been hit by sharp increases to the cost of gas and electricity. We advise people to beat these energy bills hikes by switching energy suppliers and moving to a fixed tariff ASAP and also to take steps to warm your home for less
Yes. Most people will save on their energy bills by shopping around and switching to a fixed tariff. We’ve partnered with The Energy Shop to provide you with an instant tool for comparing tariffs and seeing how much you can save.
When you’re comparing deals, remember to check how long the fixed deal lasts for any whether you’ll need to pay any exit fees if you want to leave before the end of the deal.
It’s also a good time to check for the best deal if you’re moving house, if your current supplier has poor customer service or you want a specialist tariff such as an EV tariff.
Compare energy deals, see how much you can save on electricity and gas, switch provider today.
Once you’ve shopped around for the best energy deal, the other way to save on energy bills is to use less. You can do this by:
For more ideas read out Top 10 Energy Saving Tips guide
Yes, some help is available for energy bills. For example, individual energy companies have hardship funds. Find out more in our guide on Energy grants and how to get them.
Avoid rising energy prices by shopping around and switching to a fixed energy deal. Find out instantly how much you can save with our free switching service today
Compare energy deals, see how much you can save on electricity and gas, switch provider today.
