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Energy price cap explained

The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy and standing charge if you're on a standard variable tariff.

Between 1 October and 31 December 2025, the energy price cap is set at £1,755 per year for a typical household who use electricity and gas and pay by Direct Debit. This is an increase of 2% compared to the cap set between 1 July to 30 September 2025 (£1,720).

The price cap is based on typical household energy use. Read how typical household energy use is worked out in our Average gas and electricity usage guidance.

The price cap also makes sure that prices for people on a standard variable tariff (default tariff) are fair and that they reflect the cost of energy.

You are covered by the price cap if you pay for your electricity and gas by either:

  • standard credit (payment made when you get your electricity and gas bill)
  • Direct Debit
  • prepayment meter
  • Economy 7 (E7) meter

Electricity and gas unit prices and standing charges, 1 October to 31 December 2025

 

Energy price cap per unit and standing charge

1 July to 30 September 2025

Energy price cap per unit and standing charge

1 October to 31 December 2025
Electricity

25.73 pence per kWh

51.37 pence daily standing charge

26.35 pence per kWh

53.68 pence daily standing charge    
Gas

6.33 pence per kWh

29.82 pence daily standing charge

6.29 pence per kWh

34.03 pence daily standing charge 

Figures are rounded to two decimal places and based on the England, Scotland and Wales average for people who pay by Direct Debit. These include 5% VAT.    

Energy price cap standing charges and unit rates for your region

The actual rates you are charged will depend on where you live, how you pay your bill and the type of meter you have. Get energy price cap standing charges and unit rates by region.

Costs included in energy price cap

There are different costs included in the price cap. Any changes to these costs will affect how much the price cap will be each time it is reviewed. For example, if the amount a supplier has to pay goes up, the level of the price cap will go up. If the cost goes down, the level of the price cap will go down.

The tables on this page show the latest changes in price cap costs. The costs have been rounded to the nearest pound and may not add up to the total.

You can also see how the costs have changed in each price cap level. 

Read about the costs that make up the standing charge and costs included.

Changes to costs between 1 October to 31 December 2025, payment by Direct Debit

Cost

 

 July to September 2025 October to December 2025 Change
Buying energy for customers (wholesale costs) £734 £720 -£15
Build, fix and repair pipes and wires to transport energy (network costs) £372 £396 £24
Supplier business costs (operating, debt and industry costs) £264 £270 £6
Government social and environmental schemes (policy) £198 £215 £17
Earnings Before Interest and Taxes (EBIT) allowance £43 £42 -£1
Uncertain costs and risks (headroom) £18 £18 £0
Making sure prepayment and Direct Debit customers pay the same standing charge (levelisation allowance)  £8 £10 £2
VAT (5%) £82 £84 £2
Total £1,720 £1,755 £35

Changes to costs between 1 October to 31 December 2025, payment by prepayment meter

Cost July to September 2025 October to December 2025 Change
Buying energy for customers (wholesale costs)  £734 £719 -£15
Build, fix and repair pipes and wires to transport energy (network costs)  £366 £391 £24
Supplier business costs (operating, debt and industry costs) £279 £296 £17
Government social and environmental schemes (policy)  £198 £215 £17
Earnings Before Interest and Taxes (EBIT) allowance  £43 £42 -£1
Uncertain costs and risks (headroom)  £18 £19 £0
Making sure prepayment and Direct Debit customers pay the same standing charge (levelisation allowance)  -£46 -£56 -£10
VAT (5%)  £80 £81 £2
Total £1,672 £1,707 £35

Changes to costs between 1 October to 31 December 2025, payment by standard credit

Cost July to September 2025 October to December 2025 Change
Buying energy for customers (wholesale costs)  £734 £720 -£15
Build, fix and repair pipes and wires to transport energy (network costs)  £372 £396 £24
Supplier business costs (operating, debt and industry costs) £398 £406 £8
Government social and environmental schemes (policy)  £198 £215 £17
Earnings Before Interest and Taxes (EBIT) allowance  £45 £44 -£1
Uncertain costs and risks (headroom)  £20 £20 £0
VAT (5%)  £88 £90 £2
Total  £1,855 £1,890 £35

Changes to costs between 1 October to 31 December 2025, payment by Economy 7 (Direct Debit)

Cost July to September 2025 October to December 2025  Change
Buying energy for customers (wholesale costs)  £467 £469 £2
Build, fix and repair wires to transport energy (network costs)  £228 £250 £22
Supplier business costs (operating, debt and industry costs) £143 £144 £1
Government social and environmental schemes (policy) £209 £217 £8
Earnings Before Interest and Taxes (EBIT) allowance  £25 £25 £0
Uncertain costs and risks (headroom)  £12 £13 £0
Making sure prepayment and Direct Debit customers pay the same standing charge (levelisation allowance)  £5 £5 £0
VAT (5%)  £55 £56 £2
Total  £1,145 £1,179 £34

We monitor suppliers to make sure their standard variable tariff (default tariff) rates do not go above the limit set by the price cap.

Energy price cap level dates

We review and update the price cap level every three months. The levels for the next periods will be announced by:

  • 25 November 2025 – period 1 January 2026 to 31 March 2026
  • 25 February 2026 – period 1 April 2026 to 30 June 2026
  • 27 May 2026 – period 1 July 2026 to 30 September 2026