Energy price cap to rise by 2% – but what does that mean for bills? 💡
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⚡ Energy Price Cap to Rise by 2% — What It Means for Homeowners & Buyers
📝 Key Takeaways
✅ Price cap rising 2% from October 2025
✅ Bigger impact on less efficient homes (low EPC ratings)
✅ Fixed tariffs are unaffected — but standard tariffs will increase
✅ Standing charges are also creeping up
✅ Energy efficiency is now a major cost factor in buying & selling decisions
From October 2025, the UK’s energy price cap will increase by 2%, nudging typical household bills higher. While the rise may seem modest, the impact will vary greatly depending on energy efficiency, property size, and whether you’re on a standard or fixed tariff.
For homeowners and buyers, this change is more than just a headline — it affects affordability, negotiation strategies, and long-term running costs. Here’s a breakdown of what’s changing and why it matters 👇
📈 1. What’s Changing & Why
💷 The energy price cap is rising from £1,720 → £1,755, a 2% increase for the Oct–Dec 2025 quarter
🧮 The rise applies to standard (default) tariffs — fixed deals remain unchanged
🏠 The cap is based on Ofgem’s “typical household” model (2–3 bed home, 2–3 occupants)
🕰️ The change was larger than many analysts expected, reflecting wholesale energy price trends
👉 This cap sets the maximum price per unit suppliers can charge — it’s not a hard limit on total bills, which still depend on how much energy a household uses
🏡 2. How Much More Will Homes Pay?
The rise’s impact depends on EPC rating (energy efficiency) and property size. Less efficient homes face higher increases. Table below shows average annual increases as per Property Type and Efficiency Rating:
👉 Energy performance is becoming a key financial factor for buyers and sellers alike.
👥 3. Who’s (and Isn’t) Affected
🔒 Fixed-tariff households are protected — your rate won’t change until your deal ends
💡 Standard tariff customers will see bills rise from October
🧾 Standing charges are also increasing:
Electricity: 51.37p → 53.68p per day
Gas: 29.82p → 34.03p per day
📆 The cap is reviewed every 3 months (Jan, Apr, Jul, Oct)
🔮 Some forecasts suggest stability in early 2026, but this depends on wholesale markets
💡 4. What You Can Do
📝 Fix your tariff if you’re on a standard deal — it can shield you from future cap increases.
🔄 Switch suppliers if better deals are available.
🏡 Prioritise EPC ratings when buying or selling — they directly affect energy bills and resale value
💬 Use efficiency as a negotiation tool — energy-efficient homes can command higher prices
📊 Factor in running costs in your affordability calculations, not just mortgage payments
👉 A smart energy strategy can save hundreds of pounds a year and boost property appeal i.e. Energy costs are no longer just utility bills, they're part of your property strategy
📩 For Frequently Asked Questions about energy bills, read Rightmove's article in full here 📩
📸 LEAD IMAGE | FOR RENT by Cavendish Residential 🌆 Stunning 2-bed, 2-bath duplex penthouse in Nottingham city centre — spread over three floors with a private terrace, high-spec finishes and two secure parking spaces. Perfect for modern city living, this rare home combines space, style and location. ✨ Book your viewing today — opportunities like this don’t last! 🔑
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