Price Cap Increase Means Higher Bills for Millions

The energy price cap sets the maximum price that energy suppliers can charge domestic customers on prepayment and standard variable tariffs.  

Until December 31 2025, the energy price cap per unit and the standing charge will be:

• Electricity - 26.35 per kWh (unit rate) and 53.68p per day (standing charge)
• Gas - 6.29p per kWh (unit rate) and 34.03p per day (standing charge)

When prices are adjusted for annual consumption, this means an average household on a standard variable tariff paying by Direct Debit can expect to pay £1,755 a year for gas and electricity. This is a £35 increase on the previous cap.

But there’s no cap on business energy, so suppliers aren’t restricted in what they can charge. If you’re on your supplier’s out-of-contract rates, you could pay thousands of pounds a year more for energy.

Ofgem recommends shopping around for a better fixed-rate deal. Let Bionic run an energy price comparison to see how much your business could save by switching.