British Gas, EDF, E.ON and Octopus Energy customers are being urged to make a £258 change before July to save money on their energy bills ahead of the next energy price cap change.
Energy regulator Ofgem sets the price cap four times a year and this dictates the maximum amount that suppliers can charge for each unit of energy and standing charge. The cap changes every three months – in January, April, July and October – and the price is largely based on the costs facing suppliers for providing energy. The price cap increased by 6.4% in April which took the average bill for households in England, Scotland and Wales on standard variable tariffs up from £1,738 per year to £1,849. The April price hike equated to an extra £111 annually for the average household – or around £9.25 more per month, over the three-month period of the price cap.
Ofgem said the increase in costs for the period from April to June 2025 is due to a recent spike in wholesale energy prices, which account for around 78% of the total increase.
The price cap sets the maximum rate per unit and standing charge that customers can be charged by suppliers for their energy use, but not the total bill – so the more energy you use, the more you pay. But the price cap rate is only paid by households that aren’t currently on a fixed tariff, so if you switch, it’s possible to undercut the price cap significantly.
Price comparison website Uswitch is urging households with any energy firm, such as British Gas, EDF, E.On and Octopus, who aren’t currently on a fixed tariff to switch to one as they could save up to £258 compared with the current price cap – and still beat the forecast price cap rate for July.
The cheapest fixed energy deal on Uswitch with a £258 saving compared to the April price cap is Outfox the Market’s Fix’d Dual Apr25 12M v3.0 tariff, which offers a saving of £258 against the current price cap of £1,849.
Energy consultancy Cornwall Insight has said it expects Ofgem to reduce the price cap by 9%, which would take the average household energy bill down to £1,683 – £166 less than the current rate.
But despite the forecasted fall in July, thanks to US President Donald Trump’s trade tariffs causing a slump in global gas prices, there are still cheaper deals available.
Elise Melville, energy expert at Uswitch.com said: “A summer-time fall in the price cap might sound like relief for under-pressure households – but this forecasted reduction is a drop in the ocean compared with the savings available by getting a fixed deal.
“For most households – if you haven’t switched in a year or more, you are probably on a standard tariff, and effectively throwing money out of the window.
“There are a number of fixed deals on the market cheaper than the predicted July rates. The average household on a standard tariff could save around £258 a year by switching compared with the current price cap, which also beats the latest July prediction.”
