July Energy Price Cap Rise 2025
Published date: May 2025
At Your Co-op Energy, we recognise that the increasing cost of living is a worry. This is why we're dedicated to keeping you updated on any changes that might impact your home energy, as soon as possible.
Here you can find out all there is to know about the July price cap change and what it means for you.
What is the New July 2025 Price Cap?
The UK energy price cap will decrease from £1,849 to £1,720 as of July 1st, 2025, for a typical dual-fuel UK household. This represents a 7% decrease and will be in place until October 1st.
The price cap is a limit set by Ofgem, the energy market regulator, for the amount that energy suppliers can charge customers for their tariffs during a set quarterly period. It's designed to protect customers from being overcharged, and it falls in line with the wholesale market that energy suppliers purchase energy from, including gas and electricity.
What does this mean for me as of July?
If you're on a variable tariff, your energy bills will most likely decrease from July 1st. However, it's important to note that this is just an estimate, and your actual bill will vary depending on your energy usage.
If you’re on a fixed tariff, you will remain unaffected by this price cap rise as long as your tariff doesn’t end between July 1st and September 30th, 2025.
If you are looking to choose a new energy tariff before July 1st, then our 12-month fixed energy tariff will see you saving into summer 2026. Zero Carbon energy, excellent rated customer service and no exit fees, that’s a solution that will not only protect you from the likely price cap rises but also deliver a better service you can stop any time.
What is an Average UK Household for the Price Cap?
The Ofgem price cap is based on a "typical/average household" using 11,500 kWh of gas and 2,700 kWh of electricity a year with a single dual-fuel fee for gas and electricity use, paid by direct debit.
However, there are lots of factors that influence your energy bill.
- Property size and type
- Property efficiency
- Time of energy use
- Amount of gas and electricity you use
How can I save money on my energy bills?
There are a number of things you can do to save money on your energy bills, such as:
- Switching to a fixed-rate tariff with Your Co-op Energy: This can help you lock in a lower rate and protect yourself from potential price cap rises in the future. Here at Your Co-op Energy, the advantage is even greater – unlike most other suppliers, we have no exit fees on our fixed-rate 12-month tariffs. That means you can switch to a fixed-rate or variable-rate plan with complete peace of mind, knowing you can leave at any time without penalty if your circumstances change.
- Reducing your energy consumption: There are a number of ways to do this, such as simple things like turning off lights and appliances when you're not using them and not leaving them in standby mode. Or even doing a deep-dive into your home efficiency, here's a guide to increasing your home energy efficiency.
- Shopping around for the best deals: There are a number of energy providers but be sure to factor in exit fees when comparing prices and zero carbon energy when thinking about the planet. With Your Co-op Energy's no exit fees guarantee, you can choose our great value tariff with confidence and lower your carbon footprint.
Summary of July's Price Cap Changes
- The Ofgem energy price cap will decrease for UK homes from £1,849 to £1,720.
- For over 3 years our standing charges have been cheaper than any large supplier and will continue to be so.
- If you’d like to protect your rates from future changes, we offer a 12-month fixed tariff with no exit fees and zero carbon energy. Explore our tariffs.
- We’ll keep an eye on your account balance and suggest a change to your payments if it looks like you’re paying too much or too little.
Does the July 2025 Price Cap Impact Those Without a Smart Meter and on a Variable Tariff?
If you’re on a variable tariff and don’t have a smart meter, you can still make use of the new price cap by submitting a new meter reading just after the new cap is active on July 1st. This will ensure that you are taking advantage of any potential reduction to your energy bill for the maximum time available (until September 30th).
At Your Co-op Energy, we provide a cost-effective fixed-rate tariff, variable tariff, and Community Power tariff, all with the added benefit of no exit fees and zero carbon energy.
Find out more about what Your Co-op Energy can do for you.
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