Vicky Parry
7th Jul 2025
Reading Time: 4 minutes
Consumer specialist Jasmine Birtles is telling us that we still have time to fix those tariffs, ahead of the October price cap.
Energy prices have been a worry for millions of UK households over the past few years, with volatile gas and electricity markets and an ever-changing Ofgem price cap. Now, in 2025, the question for many is: should I fix my energy tariff, or stay on the price cap?
Let’s break it down clearly — with the facts, current prices, and practical actions you can take to feel more in control of your bills this year.
What Is the Price Cap Right Now?
As of July–September 2025 (Q3 2025), the Ofgem price cap is set at:
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£1,720 a year for a typical dual-fuel household paying by direct debit (based on average use).
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This works out roughly to:
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29 pence per kWh for electricity
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7.5 pence per kWh for gas
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Plus daily standing charges of around 60p/day electricity and 31p/day gas (depending on your region).
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Looking ahead to October–December 2025 (Q4), forecasts suggest the price cap might dip slightly, to around £1,698–£1,720 depending on wholesale prices.
⚠️ Remember: The price cap does not limit your total bill — it limits the unit rates and standing charges. If you use more, you pay more.
Should You Fix Your Tariff Right Now?
With the price cap fairly stable at around £1,700, many fixed deals are being priced around or just above this level. Here’s how to think it through:
✅ Reasons to consider fixing:
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You want certainty about your bills for the next 12–24 months
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You find a fix around or below £1,700/year
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You fear prices may rise sharply in winter
Reasons to stay on the cap:
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Forecasts predict only minor changes in the cap for the rest of 2025
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You don’t want to be locked in if prices fall
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You can switch to a fix later if good deals appear
Bottom line? If you see a fix at or under the current cap (around £1,700/year for typical use), it could be worth grabbing for peace of mind. Otherwise, sticking with the price cap is a reasonable and relatively stable choice for now.
What Actions Should You Take?
Here’s how to stay in control of your energy costs in 2025:
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Check your current tariff — Are you on the standard variable (price-capped) tariff, or a fixed deal?
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Compare tariffs regularly — Use a reputable comparison site or talk to your supplier directly. Offers change quickly, so it pays to keep an eye out.
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Take regular meter readings — Or get a smart meter, so your bills are accurate.
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Use less energy where you can — Even small changes (lowering your thermostat by 1°C, using efficient lighting, shorter showers) can cut costs.
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Claim any support you’re entitled to — Including Warm Home Discount, Priority Services Register, or local grants if you are on a low income.
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Watch for the next Ofgem price cap announcement — Usually published in late August (for the October–December cap).
What Does This All Mean for Your Household?
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Budgeting: Work out what you’re using now, and check the price per unit. Most people are seeing bills around £1,700/year — but higher if you use more.
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Certainty: If you value peace of mind, a fair fixed tariff around the cap level could be wise.
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Flexibility: If you’re happy to stay on the price cap, you won’t face exit fees, so you can move to a fix later if prices rise.
✅ Key Takeaways for 2025
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The current price cap is £1,720 a year for typical use.
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Forecasts suggest prices won’t move dramatically before the end of the year.
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Fixing is mainly about peace of mind, not guaranteed savings.
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Always check unit rates and standing charges carefully before signing up to a new deal.
Jasmine’s Thoughts on the Energy Price Cap:
Go for a nice cheap 12-month fix if you can. That way, you lock in the summer rate for a good few months. I wouldn’t go for more than that, as it’s likely that bills will come down a little in January. Of course, we don’t know what will happen geopolitically in the next year – if tensions between the West and Russia continue to worsen, we could find our bills going up again. We also don’t know the outcome of the General Election and how that could impact prices. For the moment, I’d say it’s safest to fix for 12 months and then see what happens.
How to Shop Around for Energy Deals
Your current supplier might already offer an ideal fixed term tariff, so that’s the best place to start. Existing customers may get preferential rates too, so log into your online account or call your provider to find out about your tariff options. Your supplier cannot tell you which the best rate is for your usage (as they could get in trouble if they advise incorrectly), but they can tell you about the options you have.
Make a note of the different rates for day and night (if they are there) as well as the standing charge. Check the term is for 12 months, too. Then shop around before you commit.
Research other providers by looking at their websites or using a comparison tool. There are sometimes switching incentives too. Remember that if you are on a fixed term contract already, there may be financial penalties to switch supplier. Some providers offer to cover these fees for you if you switch to them.
Next, look at your last year of bills to get an idea of your average usage across the year. This is important, because the cheaper summer months can be misleading if you use those to work out your annual bill. Look for the kW/h price as well as the standing charge. Work out how many kW/h you used in the last year by subtracting a meter reading from 12 months ago from one taken today. This will help you decide if a tariff switch is a better price across the year.
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