July 2025 Energy Price Cap

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Ofgem has announced a 7% fall in the energy price cap for the period of 1st July 2025 to 30th September 2025. This means the typical annual household bill will be around £1,720 a year, a decrease of £129 from the April-June figure of £1,849 a year.  Compared to the same period in 2024, energy prices will £152 more expensive per year.

The energy price cap is represented as an annual bill based upon 2700kWh of electricity and 11500kWh of gas usage per year. Most households are unlikely to be on a typical usage and the actual cost will vary depending on your consumption. Many households in Scotland are likely to have higher typical usage than the UK average due to our colder climate.

The price cap is actually a cap on the tariff suppliers are able to charge you. This is the unit rate, the cost per kWh of energy you use and a daily standing charge.

Tariff Table

From 1st July the average tariff in the UK will be:

Please note that costs can vary by region and may vary slightly from what is represented below

Information is extracted from the Ofgem website here.

 

Direct Debit

Electricity

24.53p per kWh unit rate & 54.25p per day standing charge

Gas

6.27p per kWh unit rate & 29.97p per day standing charge

 

Prepayment Meter

Electricity

23.75p per kWh unit rate & 54.25p per day standing charge

Gas

6.06p per kWh unit rate & 29.97p per day standing charge

 

Standard Credit

Electricity

25.91p per kWh unit rate & 61.92p per day standing charge

Gas

6.61p per kWh unit rate & 37.70p per day standing charge

 

Comparison to previous price caps

While a fall in energy prices is always welcome it’s important to note that the average annual energy cost under the price cap in January-March 2025 was £1738. As energy prices increased in April by around 6.4% the July price cap is only bringing prices back down inline with what we were paying in the winter.

Energy prices remain higher than during 2024. During the July-September price cap the average energy bill will be £152 more expensive over the course of the year.

Even though prices remain consistently higher than they were before the energy crisis, Government support schemes such as the Energy Bill Support Scheme and Cost of LIving Payments have ended. The cost of living is still increasing as other household expenses continue to rise.

Households may be eligible for the Warm Home Discount which will open again in Autumn 2025. The UK Government has promised an extension to this scheme. It is not yet known what this will look like in Scotland.

 

Should I Switch?

Some fixed price deals may be cheaper than the July energy price cap. We’d currently recommend checking out the Money Saving Expert guide which lists the pro’s and con’s of all currently available tariffs that are worth considering. As tariffs may only be available for a short space of time it’s worth checking this guide to see if there’s a deal that’s right for you.

 

Get Advice

Are you worried about energy prices or debt? Our energy advisors can provide free and impartial advice to anyone in Fife. Get in touch to arrange a home visit or telephone advice appointment to see what you can do to save energy at home.

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