New 16-Month Fixed Energy Tariff for Even Longer Savings
Published date: February 2025
Switch and beat the likely rising price caps for even longer, with a lower energy price until summer 2026. This means you would be unaffected by the price cap changes for April, July, October and January 2026. Being met with a likely low price when re-fixing in summer 2026.
If you're ready to make a smart switch for your home, see our 16-month renewable tariffs.
Will Energy Prices Rise in April 2025?
The confidently predicted answer by our partners Octopus Energy, is yes. The UK energy price cap is set to increase on April 1st, 2025, from the current average annual cost of £1,738 to £1,803. This means there is almost a 4% rise in the cost of energy for the average UK home. The official announcement of this will be made by Ofgem, the UK's energy regulator, on Tuesday the 25th of February.
Why are Energy Prices set to rise in April 2025?
Long-term estimates before the new year forecasted that the April price cap in 2025 would decrease but it's now expected to be an increase. There are a few factors at play but a significant disrupter to the global energy market is the start of Donald Trump's US presidency and the uncertainty around the continued Russian war on Ukraine. These factors influence the wholesale market which directly affects the price cap for customers on any energy tariff.
Will Energy Prices Come Down in 2025?
Predicting energy costs for the rest of the year is very difficult due to the worldwide influence on the market. However, early market predictions are suggesting that there may be another price cap rise in summer 2025, a small decrease from October 2025 and another rise from January into 2026. Meaning the price of home energy will likely be higher in 12 months, compared to what we are currently offering on our 16-month fixed tariff.
The April price cap in 2026 will likely fall closer in line with more typical market trends than in 2025. Leaving you with a lower price when you come to fix your home energy again in 16 months’ time.
Why have prices been so high in recent years?
Over the last few years, the energy market has faced a crisis with multiple factors at play. Energy prices quickly spiked towards the end of 2021 and reached their highest point during the winter of late 2022 and early 2023, before gradually declining. Despite this decrease, prices remain higher than in 2021, before the initial rise.
The primary reason for this has been the increased wholesale energy costs. When the crisis began in 2021, wholesale prices shot up as many nations came out of COVID-19 lockdowns, resulting in a surge in energy demand as businesses and industries restarted.
Furthermore, the conflict between Russia and Ukraine worsened the situation, driving wholesale energy prices even higher as numerous countries cut back or stopped importing Russian gas, constricting supply.
Although wholesale prices have significantly decreased from their peak during the energy crisis, they remain substantially above pre-crisis levels.
If you’re curious as to how renewables come into this, you can read here about why renewables are impacted by the price cap changes.
Why Switch to Your Co-op Energy?
We offer 100% renewable energy on our two 16-month fixed tariffs, the Community Power tariff and the fixed tariff that can both save you money over the next 16 months while reducing your home's carbon footprint. You can even have your home's electricity supply to be 100% generated by UK renewables owned by local groups, with our Community Power tariff.
Reasons to switch
- Rated excellent on Trustpilot by over 7,000 reviews
- Top 5 rated energy supplier by Which?
- Top 5 rated energy supplier for customers by Citizens Advice
- Unique to market Community Energy and all tariffs have 100% renewable electricity
- Great value renewable energy tariffs with no exit fees
- Partnered with the best, Octopus Energy
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