Energy price cap now predicted to rise in October - is it time to take a fixed tariff?
Energy bills will be higher in October when Ofcom's price cap changes, according to new predictions.
The price cap increased to £1,849 in April but is set to fall to £1,720 at the start of July, when demand for gas and electricity is lower.
However, households not on a fixed tariff may have to brace themselves for another increase in their bills when the price cap changes again in October.
Suppliers often publish their predictions for where the price cap might be in three months, although these usually come with heavy caveats that it might change.
Eon Next predicts dual-fuel households will pay £28 more for their energy in October as the price cap increases £1,748.
EDF predicts an even bigger increase of £44 to £1,764, while British Gas thinks it will rise by £45 to £1,765.
Further ahead, both EDF and British Gas predict a further increase in January to £1,796 and £1,795.
This follows the general trajectory of the price cap, with households paying higher prices in the colder months.
While the energy market has stabilised in recent months, British Gas warns that 'surprises can happen' and if geopolitical tensions worsen, prices could go up affecting its predictions.
EDF says its long-term forecast 'has increased on the back of rising gas prices'.
These changes only apply to households using variable rates and not those with fixed deals.
Is it time to take out a fixed deal?
Households that fixed their energy bill today would still make a significant saving on both the July price cap and the predicted increase in October.
Outfox the Market is offering a two-year fixed deal with an average annual bill of £1,535.
When energy prices spiked most households slipped energy price cap tariffs, but it is now possible again to switch to fixed rate energy deals that can save you money.
This is Money's recommended partner uSwitch lets you compare the best energy deals for you, based on your home and gas and electricity costs.
> Compare the best energy deals with uSwitch*
By entering your address and energy usage, you can search for energy deals that can cut your costs and suit how you live.
Switching energy provider can also help the planet, if you move to one of the green deals offering electricity from renewable sources and more environmentally-friendly gas.
> Check the best fixed rate energy deals with uSwitch and This is Money *
*Affiliate links: If you take out a product This is Money may earn a commission. This does not affect our editorial independence.
If prices were to rise to the highest predicted level in October, households would still make a saving of £230.
Similarly, its 12-month deal is currently set at £1,537, which would offer a £228 saving in October, and its 18-month deal a £225 saving.
These deals lock customers in for a period of time, at least 12 months, so the risk is that the price cap could fall later on and they would pay more - but it is unlikely the price cap will drop dramatically in the near future.
Tariffs cheaper than the price cap
Top energy deals
Supplier Tariff Fix duration Average annual bill Saving vs April price cap (£1,849) Saving vs July price cap (£1,720) Exit fees
Outfox the Market 2-year Fix'd Dual Jun25 v2.0 24 months £1,535 £314 £185 £100 per fuel
Outfox the Market Fix'd Dual Jun25 12M v2.0 12 months £1,537 £312 £183 £50 per fuel
Outfox the Market 18-Month Fix'd Dual Jun25 v1.0 18 months £1,540 £309 £180 £75 per fuel
Tulo Energy Tulo Fixed May 25 12 months £1,585 £264 £135 £60 per fuel
E.ON Next Next Fixed 12m v62 12 months £1,599 £250 £121 £50 per fuel
Source: Uswitch.com. Prices correct as of 8:42am on 16 June 2025. Tariffs included within the table are the cheapest non-bundle fixed tariffs, not variable or tracker. All energy tariffs and prices mentioned are subject to change without notice, and rates vary upon region. These are the cheapest tariffs available based on suppliers who have updated Uswitch with their rates.
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