Ofgem’s Energy Price Cap rises yet again in October 2025 – this time by 2%. Understand what that means for households and how energy prices have shifted between 2020 and 2025.
Another 2% Rise: The Energy Cap Won’t Stop Climbing
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Rising energy bills – a burden for households
From October Ofgem’s Energy Price Cap will increase by another 2%, pushing the typical dual-fuel bill from £1,720 to £1,755 a year.
That may not sound like much, but it’s yet another squeeze on households already stretched by increasing energy costs over the years. It’s proof that while wholesale prices may have eased, the real pain now comes from ever-climbing standing fees.
The demoralising reality: 2025 vs 2020
Let’s have a look at some figures comparing the Energy Price Cap in October 2025 to what energy unit prices and standing charges looked like back in 2020.
October – December 2025 (source: Ofgem, 2025)
Unit price of electricity – 26.35p/kWh Unit price of gas – 6.29p/kWh
Standing charge – 53.68p/day Standing charge – 34.03p/day
October – December 2020 (source: Electricity Prices, 2025)
Unit price of electricity ~17.19p/kWh Unit price of gas ~3.00/kWh
Standing charge ~24.38p/day Standing charge ~26.07p/day
What this means for you
- Unit rates have increased significantly since 2020.
- Standing charges have exploded — more than twice what you paid for electricity just five years ago.
- Even if you use no energy at all, your supplier still collects over £320 a year from standing charges alone.
Why it hurts more than ever
This isn’t just a “2% rise.” It’s the continuation of a five-year squeeze that has seen energy go from being a background bill to a major monthly burden. Families have to pay more simply for keeping the lights on — or worse, just for being connected to the grid.
What you can do
- Stay informed – Knowing how charges are shifting is your best defence. Always make sure you follow updates that are posted on Ofgem’s website.
- Cut your energy usage – Home insulation, smart heating, and energy-saving tech are excellent ways to reduce the energy consumption of your home, as they can naturally regulate the internal temperature and create a comfortable living environment.
At Viridian, we understand the amount of heat you can lose through an uninsulated loft or cavity walls – that is why we are here to help! Professionally installed insulation will guarantee you long-term savings on your energy bills regardless of any changes to the Energy Price Cap.
We take pride in the installation process carried out by our own qualified and NVQ-certified installers. Our team will ensure that you experience the long-term benefits of home insulation, including improvement to your home’s energy efficiency (its EPC), as well as its overall value.
Transform your loft with our packages here Book a free cavity wall survey now