GLEG UK Energy Market Update…
August 26, 2025
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From 1 October 2025, Ofgem will raise the energy price cap by 2%, pushing the average dual-fuel household bill to £1,755 a year — about £35 more annually, or just under £3 extra per month.
What’s driving the rise?
- Network & policy costs are up, even as wholesale prices fall.
- The Warm Home Discount will expand this winter, giving vulnerable households a £150 rebate, though the scheme adds around £1.42/month to all bills.
What this means for households…
- Families already under cost-of-living pressure face another squeeze.
- Roughly one in three households on fixed-rate tariffs won’t be affected, but the rest should review their options.
Steps to consider…
- Check fixed-rate deals — they could shield you from future rises.
- Use comparison tools to find savings worth £200–£300/year.
- Access support schemes like the Warm Home Discount if eligible.
The bigger picture…
This modest increase highlights the ongoing tension between infrastructure costs, government support, and consumer affordability. It also reinforces the need for long-term investment in clean, secure energy to keep bills stable.