Energy bills are set to rise by another £111 a year for a household using a typical amount of gas and electricity, when the latest energy price cap is introduced in April 2025.
This raises the average annual bill by 6.4% to £1,849, up from £1,738 currently, and will leave many households struggling to make ends meet, especially as the Winter Fuel Payment is now only available to pensioners claiming means-tested benefits.
It’s worth noting that Ofgem’s price cap only limits the amount you can be charged for each unit of gas and electricity you use, not how much your bills will be overall. Your bill is linked to the amount of energy you use, so if you live in a large property, for example, your costs may well exceed the price cap, and if you live in a smaller property, you may end up paying less than the price cap.
On a more positive note, in recent months providers have finally started to launch more competitive price energy deals, which vanished from the market amid the energy crisis.
If you’re considering switching your energy provider, it’s worth doing plenty of research so you can be certain you’ve found the best possible deal to suit your needs. Comparison websites such as MoneySuperMarket, Uswitch and Compare the Market enable you to compare the latest energy tariffs, whether you’re looking for a fixed or variable deal.
Gareth Kloet, spokesperson for Go Compare energy, said: “With the new energy price cap coming into effect on April 1, we would encourage customers to review their energy options and consider the best plan for their individual circumstances. When it comes to switching providers, there are options available which could potentially help save you money.
“We recommend looking closely at your contract before making a change, as your current energy provider may charge you an exit fee and this will need to be taken into consideration when working out any potential savings – though it may still be worth switching.”
Here we answer your questions about your options when it comes to energy tariffs. We’ll regularly update this as the news around energy costs changes.
Which tariff are you on?
If you’re considering moving to a different energy tariff, your first step should be to establish which tariff you’re currently on. You’ll usually be on a variable tariff, the cost of which is determined by the price cap, if your fixed energy tariff has ended and you haven’t switched to another deal, or if you’ve never switched your energy tariff, or if you were with a supplier that’s gone bust and you’ve been moved to another provider. The majority of UK households are currently on the energy price cap guarantee.
The cap gives an estimate of the maximum amount per year that an average household using a ‘typical’ amount of energy will pay. However, it’s by no means a limit, as if you live in a large property, or use a lot of energy, you’ll pay more than this. Read more in our article What is the energy price cap?
What if you’re locked into a fix?
If you’ve locked into a fixed rate energy tariff at a higher rate than the energy price cap due to energy price rises, it’s worth seeing whether there are any exit fees to leave your current deal. If there aren’t, they are relatively low, or it’s due to finish soon anyway, you may find you’re better moving onto your provider’s default tariff, unless cheaper tariffs become available.
If you’re on a fix that costs less than the energy price cap, you’ll continue on this until your fixed term ends. When your fix ends, see if it’s possible to switch your tariff when prices start to come down.
Should I move to a fixed or discounted deal?
As mentioned, there are some competitive fixed and discounted deals available from some energy suppliers, and more deals are likely to be launched in the next few days and weeks. According to MoneySavingExpert, the cheapest year-long fixed tariffs are around 4% lower than the current price cap so it’s well worth moving.
It’s also worth contacting your particular energy supplier and asking if there are any deals they are offering that might be worth considering. Here are a few deals that are currently available but bear in mind that these change frequently:
One of the tariffs that’s likely to be worth considering is Outfox the Market’s 12-month Fix’d Dual Feb 25 v2.0, which is a dual fuel deal available to new and existing customers. The tariff is 3.9% less than the current price cap for a 12-month term, with £50 dual-fuel exit fees.
Outfox the Market also offers an 18-month Fix’d Dual Feb 2 v2.0 deal A which is again 3.9% less than the current price cap and has £100 dual-fuel exit fees.
Alternatively, Ovo Energy’s 17-month Extended Fix Feb 2025 tariff will stay approximately 3.3% below the current Price Cap for a year, and has £75 per fuel exist fees.
There are other fixed and discounted tariffs available, so it’s worth comparing plenty of different deals before making the switch to a new tariff. Keep an eye on your provider’s tariffs to see if any come up that are worth considering.
Figures were correct at time of writing (25.02.2025)
What can you do if you’re struggling to pay your energy bills?
It’s an extremely tough time for households battling rising costs across the board, from energy to food and other general utilities. As a first step, it’s worth contacting your energy provider if you’re struggling and slipping into the red. They may be able to help with a payment plan, or make other suggestions. Read more in our article What can you do if you can’t pay your energy bills?
If you were born before 23 September 1958 and are currently claiming means-tested benefits such as Pension Credit, you’ll still be entitled to the Winter Fuel payment, although payments have already been made for 2024, so if you claim Pension Credit now, you’ll receive your first payment next winter. This is a tax-free amount of either £200 or £300 to help pay your heating bills over winter, and the amount you receive depends on your age and anyone else in your household.
If you’re on a low income or claiming the Guarantee Credit element of Pension Credit, you may also qualify for the Warm Home Discount Scheme, which is a one-off £150 discount on your electricity bill paid to your supplier between October and March. Find out more in our guide Are you eligible for help with heating costs?
If your home is poorly insulated, you may be able to make improvements through installing insulation and by draft-proofing windows and doors. You can find tips on how to reduce your energy bills in our article Energy saving tips: how to reduce your bills.
It’s also well worth checking whether you might be able to reduce some of your other outgoings, so you can free up a bit of extra cash to help you cover rising energy costs. Our article Seven ways to save on your household bills explains how you may be able to make savings.
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