Between 1 January to 31 March 2025 the energy price cap is set at £1,738 per year for a typical household who use electricity and gas and pay by Direct Debit. This is an increase of 1.2% compared to the cap set between 1 October to 31 December 2024 (£1,717).
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 January to 31 March 2025
| |
Energy price cap per unit and standing charge
1 October to 31 December 2024
|
Energy price cap per unit and standing charge
1 January to 31 March 2025
|
| Electricity |
24.50 pence per kWh
60.99 pence daily standing charge
|
24.86 pence per kWh
60.97 pence daily standing charge
|
| Gas |
6.24 pence per kWh
31.66 pence daily standing charge
|
6.34 pence per kWh
31.65 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 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.
Changes to costs between 1 January to 31 March 2025, payment by Direct Debit
|
Cost
|
October to December 2024 |
January to March 2025 |
Change |
| Buying energy for customers (wholesale costs) |
£736 |
£755 |
£19 |
| Unexpected temporary cost adjustments (adjustment allowance) |
£28 |
£28 |
£0 |
| Build, fix and repair pipes and wires to transport energy (network costs) |
£370 |
£370 |
£0 |
| Supplier business costs (operating) |
£232 |
£232 |
£0 |
| Government social and environmental schemes (policy) |
£187 |
£187 |
£0 |
| Earnings Before Interest and Taxes (EBIT) allowance |
£43 |
£43 |
£0 |
| Uncertain costs and risks (headroom) |
£18 |
£18 |
£0 |
Extra costs for supplying energy customers using different payment methods
(payment uplift) |
£16 |
£16 |
£0 |
| Making sure prepayment and Direct Debit customers pay the same standing charge (levelisation allowance) |
£7 |
£7 |
£0 |
| VAT (5%) |
£82 |
£83 |
£1 |
| Total |
£1,717 |
£1,738 |
£21 |
Changes to costs between 1 January to 31 March 2025, payment by prepayment meter
| Cost |
October to December 2024 |
January to March 2025 |
Change |
| Buying energy for customers (wholesale costs) |
£735 |
£755 |
£19 |
| Unexpected temporary cost adjustments (adjustment allowance) |
£9 |
£9 |
£0 |
| Build, fix and repair pipes and wires to transport energy (network costs) |
£363 |
£363 |
£0 |
| Supplier business costs (operating) |
£187 |
£187 |
£0 |
| Government social and environmental schemes (policy) |
£187 |
£187 |
£0 |
| Earnings Before Interest and Taxes (EBIT) allowance |
£43 |
£43 |
£0 |
| Uncertain costs and risks (headroom) |
£18 |
£18 |
£0 |
Extra costs for supplying energy customers using different payment methods
(payment uplift) |
£83 |
£83 |
£0 |
| Making sure prepayment and Direct Debit customers pay the same standing charge (levelisation allowance) |
-£35 |
-£35 |
£0 |
| VAT (5%) |
£79 |
£80 |
£1 |
| Total |
£1,669 |
£1,690 |
£21 |
Changes to costs between 1 January to 31 March 2025, payment by standard credit
| Cost |
October to December 2024 |
January to March 2025 |
Change |
| Buying energy for customers (wholesale costs) |
£736 |
£755 |
£19 |
| Unexpected temporary cost adjustments (adjustment allowance) |
£28 |
£28 |
£0 |
| Build, fix and repair pipes and wires to transport energy (network costs) |
£370 |
£370 |
£0 |
| Supplier business costs (operating) |
£232 |
£232 |
£0 |
| Government social and environmental schemes (policy) |
£187 |
£187 |
£0 |
| Earnings Before Interest and Taxes (EBIT) allowance |
£44 |
£45 |
£0 |
| Uncertain costs and risks (headroom) |
£20 |
£20 |
£0 |
Extra costs for supplying energy customers using different payment methods
(payment uplift) |
£125 |
£126 |
£1 |
| VAT (5%) |
£87 |
£88 |
£1 |
| Total |
£1,829 |
£1,851 |
£22 |
Changes to costs between 1 January to 31 March 2025, payment by Economy 7 (Direct Debit)
| Cost |
October to December 2024 |
January to March 2025 |
Change |
| Buying energy for customers (wholesale costs) |
£456 |
£474 |
£17 |
| Unexpected temporary cost adjustments (adjustment allowance) |
£15 |
£15 |
£0 |
| Build, fix and repair wires to transport energy (network costs) |
£239 |
£239 |
£0 |
| Supplier business costs (operating) |
£117 |
£117 |
£0 |
| Government social and environmental schemes (policy) |
£199 |
£199 |
£0 |
| Earnings Before Interest and Taxes (EBIT) allowance |
£25 |
£25 |
£0 |
| Uncertain costs and risks (headroom) |
£12 |
£12 |
£0 |
Extra costs for supplying energy customers using different payment methods
(payment uplift) |
£9 |
£9 |
£0 |
| Making sure prepayment and Direct Debit customers pay the same standing charge (levelisation allowance) |
£4 |
£4 |
£0 |
| VAT (5%) |
£54 |
£55 |
£1 |
| Total |
£1,131 |
£1,150 |
£19 |
The levelisation allowance was added into the price cap on 1 April 2024. It is in place to make sure people who pay for their energy using a prepayment meter will pay the same standing charge as those who pay by Direct Debit.
We monitor suppliers to make sure their standard variable tariff (default tariff) rates do not go above the limit set by the price cap. Read more about how we protect these people in our energy price cap (default tariff) policy.
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 February 2025 – period 1 April 2025 to 30 June 2025
- 26 May 2025 – period 1 July 2025 to 30 September 2025
- 27 August 2025 – period 1 October 2025 to 31 December 2025
