Energy price cap from 1st July 2025
Summary: The energy price cap drop from July 2025 means lower bills for most people who pay energy suppliers directly. This does not apply to customers who have bills included in their rent or service charges. The cap does not guarantee lower total bills for households that use a lot of energy or those on fixed tariffs. If you use more energy, you will pay more.
From 1 July to 30 September 2025, the UK energy price cap set by Ofgem will decrease by 7%. It will fall from £1,849 to £1,720 per year for a typical household paying for gas and electricity by Direct Debit.
What is the energy price cap?
The energy price cap is the limit an energy company can charge you for standing charges and per unit of energy you use. This means how much you spend still depends on how much energy you use. The energy price cap is not the maximum you could spend on energy bills per year.
What can I expect to pay?
Electricity: 25.73p per kWh, 51.37p daily standing charge
Gas: 6.33p per kWh, 29.82p daily standing charge
These figures are based on average usage (11,500 kWh gas and 2,700 kWh electricity per year).
A daily standing charge is a fixed fee you pay every day to your energy supplier. This pays for having your home connected to the gas and electricity network. It is the same no matter how much gas or electricity you use. The amount of your daily standing charge depends on who your energy supplier is.
Who do the changes affect?
The price cap covers customers who pay energy suppliers directly for gas and electricity. You might pay by Direct Debit, standard credit, or prepayment meter.
If your energy bills are included in your rent or service charge, these changes won’t affect what you pay. This is because service charges are reviewed yearly. You can find out more here: Information about Service Charges - North Star Housing Group
Will I notice any changes?
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Lower Bills: If you pay your energy bills directly to your energy supplier, you should see a reduction in your energy costs. You'll pay about £11 less per month compared to the previous quarter. This saving is based on typical usage.
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Prepayment Meters: Customers with prepayment meters will also notice lower prices. Prices will update automatically after a top-up from 1 July.
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Usage Matters: The cap is based on average consumption. If your household uses more energy than the "typical" amount, your annual bill will be higher.
What if I’m still struggling to pay?
- You can get free support from the HEAT service if you’re struggling to pay your bills, are out of work, or are in debt. They’ll help you get professional support, free energy-saving upgrades, and reduce your energy bills: https://www.heat-thewisegroup.co.uk/
- Visit Citizens Advice for useful information: https://www.citizensadvice.org.uk/consumer/energy/energy-supply/get-help-paying-your-bills/
- Our Welfare Benefits team can also help you make sure you’re getting all of the financial support you’re entitled to. Call them via Customer Services on 03000 11 00 11 or email Welfare.Benefits@northstarhg.co.uk.
