Price Cap set to increase by 5% (~£80) to ~£1,815 in April

Price Cap set to increase by 5% (~£80) to ~£1,815 in April 2025, and could stay at around ~£1,800 for the next 12 months.

We're expecting Ofgem to set the cap at ~£1,815, an increase of £77 based on wholesale prices so far, with 11 days left in the current observation window. Current wholesale prices also suggest the cap could stay around this level throughout the year.

While wholesale costs may ease later in 2025, rising operating and network costs could offset any reductions.

Affordability remains a major concern, with energy debt now reaching ~£4bn, as many customers struggle to pay their bills. Ofgem is exploring potential interventions, but until then, the best way for customers to save is by switching to alternative tariffs, a trend that may continue growing in 2025.

Our latest projections for the next four Price Caps:

• 1st Apr to 30th Jun - £1,815
• 1st Jul to 30th Sep - £1,805 
• 1st Oct to 31st Dec - £1,795 
• 1st Jan to 31st Mar - £1,805 

These figures are rounded to the nearest £5 due to wholesale-driven uncertainty, and represent the average bill across Great Britain for a dual fuel customer with medium consumption, paying by direct debit. 

Typical customers would have saved £90 in 2024 on a dynamic time-of-use (TOU) tariff

In 2024, even customers with typical consumption patterns would have benefited from savings on dynamic tariffs. But in 2025, those same habits may not be enough - adjusting usage will be key to unlocking similar savings.

Our latest analysis shows that day-ahead electricity prices won’t always guarantee a discount against the Price Cap, exposing customers to wholesale market volatility.

Earlier this year, we emphasised the crucial role of customer engagement in maximising the benefits of dynamic pricing. With an upcoming Price Cap increase expected, even more customers may explore alternative tariffs to cut costs - meaning proactive support from suppliers will remain key.

Revisit Tom Bromwich's article here, exploring the actions suppliers should take to better understand customer needs and help them fully realise the savings potential of dynamic tariffs.

Price Cap increase - Estimate the impact on your Direct Debit levels

With our Price Cap Calculator, you can:

• Estimate the impact of the latest Price Cap on your Direct Debit levels
• Visualise your typical monthly bill shape over the next 12 months
• Compare fixed tariffs with the standard variable rate to explore potential savings

How it works:

• Find the average usage for your region and property size, or provide actual consumption (click 'Add a Fixed Price Tariff for Consumption' if desired)
• Enter your current debt or credit levels, and suggested Direct Debit amount
• See a forecast of your account balance over the next 24 months

Try it for yourself here.

For more on the expected Price Cap increase and how to support customers with the challenges ahead, contact Matt Turner.