The UK energy price cap is increasing by 6.4% in April 2025, raising concerns for millions of households. With rising energy costs, finding ways to reduce bills is more important than ever. If you’re wondering how to lower your energy expenses, we’ve got you covered.
This guide will break down why the price cap is rising, what it means for you, and the best ways to save money, including switching to the best fixed energy tariffs available.
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Why Is the Energy Price Cap Increasing?
The energy price cap is a limit set by Ofgem, the UK’s energy regulator, to control the maximum price suppliers can charge per unit of electricity and gas. This cap is reviewed every three months.
- From April 1, 2025, the cap increases by 6.4%, bringing the average annual bill to £1,849.
- The main reason? Wholesale energy prices have risen by 78% in recent months.
🔹 What does this mean for you? If you’re on a standard variable tariff (SVT), your energy bills will increase unless you switch to a fixed-rate deal.
How the Price Cap Works
The energy price cap controls the unit price of electricity and gas but does not cap your total bill. The more energy you use, the more you pay.
From April 2025, the new maximum rates are:
- Electricity: 27.03p per kWh (with a 53.80p daily standing charge)
- Gas: 6.99p per kWh (with a 32.67p daily standing charge)
Example Calculation: If you use 3,100 kWh of electricity and 12,000 kWh of gas per year, your bill will be around £1,849.
🔸 Solution? Lock in a fixed-rate tariff before prices rise again.
Best Fixed-Rate Tariffs to Switch to Now
Switching to a fixed-rate energy tariff can help protect you from future price hikes. Here are some of the best deals available right now:
Top Fixed-Rate Energy Tariffs (As of February 2025)
| Provider | Fixed Tariff Name | Estimated Annual Cost | Contract Length |
| So Energy | So Aspen Two Year | £1,634.70 | 24 months |
| British Gas | Price Protection | £1,699 | 16 months |
| EDF Energy | Sunday Saver | £1,715 | 12 months |
| Ecotricity | Eco Fix 24 | £1,740 | 24 months |
💡 How to switch:
- Compare tariffs on sites like MoneySuperMarket or Compare the Market.
- Check exit fees before switching from your current provider.
- Lock in a fixed deal as soon as possible to avoid further price rises.
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10 Easy Ways to Cut Your Energy Bills
Beyond switching tariffs, you can cut your bills with these smart energy-saving tips:
Heating & Insulation
- Lower your thermostat by 1°C – saves up to £150/year.
- Use radiator reflectors to keep heat inside your home.
- Install draught excluders to stop heat escaping.
Electricity Savings
- Switch to LED bulbs – uses 80% less energy.
- Turn off appliances instead of leaving them on standby.
- Wash clothes at 30°C instead of 40°C or higher.
Water & Gas Savings
- Take shorter showers – saves £95/year.
- Fix dripping taps – a single drip can waste 5,500 litres per year.
Renewable Energy Options
- Install solar panels to reduce electricity costs long-term.
- Look for green energy tariffs to support renewable energy sources.
Government Support & Energy Grants
If you’re struggling with energy costs, you may be eligible for government grants and support schemes:
- Warm Home Discount – £150 off for eligible households.
- Winter Fuel Payment – £100-£300 for pensioners.
- Energy Company Obligation (ECO4) – Free home insulation for low-income households.
Find out more at Gov.uk Energy Support.
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UK Energy Alert (FAQs)
1️⃣ Will the price cap go up again in 2025?
Yes, Ofgem reviews the cap every three months. Prices may rise further if wholesale energy costs increase.
2️⃣ How do I know if I’m on a standard variable tariff?
Check your latest bill or contact your energy provider. If you haven’t switched in a while, you’re likely on an SVT, which is usually more expensive.
3️⃣ Is it worth fixing my energy tariff now?
Yes, especially if you find a deal below the new price cap (£1,849). Fixed tariffs protect you from future hikes.
4️⃣ Can I get help with my energy bills?
Yes! Check if you qualify for government discounts and grants like the Warm Home Discount and ECO4 scheme.
