Energy Price Cap warning as price set to increase in October
This follows a similar rise in April, and a cut to come in July, but will still come as a blow to customers, who face increasing bill prices and rising food costs.
Martin Lewis says: "The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through the Oct Cap assessment period).
"Much of this is on the back of the rise in energy wholesale prices due to the conflict in the Middle East. Current predictions range - Up 1.6%-2.8% Oct - Up c.1% on top of that in Jan - Up c.3% on top of that next April Though the further out you go the more crystal ball gazing it is."
Not great news. The Energy Price Cap now predicted to RISE about 2% or 3% in October.
The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through… — Martin Lewis (@MartinSLewis) June 17, 2025
What is the energy price cap?
The term is quite confusing and it's important to note it's not the maximum price you will pay - it's an average. If you use more, you will pay more.
The cap was introduced on January 1 2019 by regulator Ofgem, with the aim of preventing the millions of households on expensive variable tariffs from being ripped off.
But it only limits what you pay for each unit of gas and electricity that you use.
It's based roughly on wholesale energy prices (those that firms pay) and applies only to providers' standard and default tariffs, which the vast majority of households are now on.
Recommended reading:
Warm Home Discount
There is some better news for those on very low incomes this winter, with an expansion of the £150 Warm Home Discount to 2.7m more low income households winter 2025/26.
Martin Lewis added: "It'll be done by getting rid of the 'high energy cost' criteria for those on means tested benefits like Universal Credit (which helps working people and non working on low incomes).
"That's good as it's a terribly implemented system which left many, literally, unfairly out in the cold."
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'Washing machines and tumble dryers are some of the most energy-intensive appliances in the house, so they are perfectly suited to such schemes,' she said. 'By saving up your laundry, you can save significant amounts of money.' Ria urges other households to cotton on to the fact there are big savings to be made by adjusting their washing routine. 'Over the course of a year, savings from a scheme like this can really add up,' she said. 'I'd really recommend avoiding peak-time power use – and saving laundry through the week for a big Sunday session.' To find out if your supplier offers a scheme, visit their website. Note that to take advantage of "off-peak" schemes such as this, you will need a working smart meter. Ria's other tips to keep energy costs down Saving up her washing for the cheaper "off-peak hours" on a Sunday is not the only step that Ria takes to help keep a lid on her energy bills. 'I always keep a pillow and blanket by the sofa in case I need to layer up when temperatures drop,' she said. 'And I've got hot water bottles ready to go whenever I need them.' Ria is also diligent about keeping cold air out of her home and ensuring that warm air stays in. 'I've got big thick curtains that cover the doors completely, as well as draught excluders to go along the bottom. "Lots of these are habits I learned from my childhood.' The savvy pensioner is also disciplined about not cranking up the heating. 'I can't afford to get tempted to notch up the thermostat,' she said. 'If anything, I try turning it down a little.' As we've reported previously, reducing it by one degree can potentially slash your heating bills by around £100. Ria added: 'It might not sound like a lot, but small changes can make a big difference.' Suppliers offering free or half-price electricity PLENTY of suppliers cut rates for customers at certain times. British Gas PeakSave and PeakSave Green Flex Electricity pricing: Half price unit rate Available hours: Sunday 11am - 4pm. Additional 1-2 hour sessions when renewable energy is plentiful with PeakSave Green Flex. Reward mechanism: Bill credit applied after event. Half price electricity during events. Requirements: British Gas electricity customer with working smart meter. Sign up to one of the schemes EDF Energy Sunday Saver Challenge Electricity pricing: Free Available hours: Up to 16 hours per week on Sundays Reward mechanism: Bill credit applied after the final free Sunday of each month Requirements: EDF electricity customer with smart meter that sends 30-minute readings (or set up to do so). Shift electricity use away from peak times throughout the week to build up free hours Octopus Energy Free Electricity Sessions Electricity pricing: Free (extra electricity above normal usage) Available hours: Variable - customers are notified when sessions occur (most common when renewables are abundant) Reward mechanism: Bill credit applied after each event Requirements: Octopus Energy customer with smart meter and signed up to the Octoplus loyalty scheme. OVO Energy OVO Beyond Electricity pricing: Free Available hours: Customers choose two hours of free electricity each week by midnight on Sundays (excluding peak hours) from May 5 to August 31, 2025 Reward mechanism: Bill credit applied the following month Requirements: OVO Energy customers signed up to OVO Beyond with a smart meter capable of sending 30-minute readings. No specific tariff required. Scottish Power Power Saver (Half-Price Weekends) Electricity pricing: Half price unit rate Available hours: Saturday and Sunday 11am - 4pm Reward mechanism: Bill credit applied after event
