Ofgem's energy price cap.
Our energy price cap forecast.
We’re committed to giving you the information you need, when you need it, especially when it comes to making informed decisions about your energy use. So, after looking at the facts and crunching the numbers we’ve predicted that the January price cap will rise to £1,739.1 This is an increase of £22 compared to the previous October price cap.
Energy price cap forecast.
E.ON Next price cap predictions for January 2025 - July 2025.
| Date | Price cap prediction | Change from previous price cap |
|---|---|---|
January 2025 | £1,739 | +£22 |
April 2025 | £1,775 | +£36 |
July 2025 | £1,731 | -£44 |
What this means for you.
Although future energy market prices aren’t set in stone, we’re making it easier than ever for you to manage your energy with confidence. Simply go to your online account to check out our latest fixed tariff deals and take control of your energy.
Ofgem's price cap.
On 23 August 2024, Ofgem announced that the energy price cap, for a typical household who use electricity and gas and pay by Direct Debit, would be £1,717 from 1 October 2024. This figure uses Ofgem’s definition of ‘average energy use’ known as the Typical Domestic Consumption Values (TDCV). Ofgem sets the maximum amount that suppliers can charge for each unit of electricity and gas but not the total bill, so if you use more energy, you will pay more.
Customers on our standard variable tariff, Next Flex, will be sent a letter or email detailing the changes to their unit prices and standing charges for the period of 1 October to 31 December.
Ofgem’s energy price cap sets a maximum unit price for each kilowatt hour of energy used by customers on a standard variable tariff (SVT). The specific unit rates each customer sees will vary by region and payment type.
Suppliers may offer a lower standing charge for their default tariffs under the price cap but to raise the unit rate above that assumed in Ofgem’s price cap, they need to demonstrate that the overall amount charged to consumers is at or below the total price cap. Suppliers are free to offer fixed tariffs with a different balance of standing charges and unit rates and many do so.
Standing charges vary by supplier, where you live, how you pay and what meter you have. Standing charges by region.
The energy price cap applies to customers on a SVT. If you’re on a fixed tariff, the price cap won’t affect you. You can log in to your account and see which tariff you're on. Did you know that we have a tariff with prices that stay below the energy price cap? Our Next Pledge tariff costs less per unit than the price cap unit rate, whether it goes up or down. With our Next Pledge tariff you’ll get energy prices guaranteed to stay £50 below the Ofgem price cap. T&Cs apply. Get an energy quote today.
The next energy price cap review is in November and will be effective from 1 January 2024.
Ofgem has changed their definition of ‘average energy use’. Ofgem’s old definition of average energy use, known as the Typical Domestic Consumption Values (TDCV) has changed to more closely reflect the current average energy use. Typical annual household consumption is now estimated to be 2,700 kWh a year for electricity, and 11,500 kWh a year for gas. Learn more about Ofgem’s average electricity and gas usage.
What the energy price cap means for customers.
Standard variable tariff (SVT) customers.
Customers on a standard variable tariff (SVT) will see their unit prices increase to be in line with those set by Ofgem from 1 October 2024.
The specific unit rates each customer sees will vary by region and payment type. This is to reflect the different costs to suppliers of providing energy to homes and servicing the different payment methods. The regional variations for electricity, and payment type variations, have been adjusted by Ofgem in the most recent price cap calculations (23 August 2024). We will adjust standard variable tariffs automatically. Customers on standard variable tariffs do not need to take any action.
Fixed tariff customers.
Fixed tariff customers will remain at the prices they agreed when they took their contract out.
Prepayment meter customers.
For prepayment meter customers, Ofgem's energy price cap will be applied to the price you pay for each unit of energy. The unit price varies regionally, by payment method and depends on the time of day that the energy is used but the new unit prices will increase in line with the price cap from 1 October 2024.
From 1 April 2024 prepayment customers and Direct Debit customers covered by the price cap will pay the same standing charge, known as ‘levelisation’. This policy replaces the support through the Energy Price Guarantee which expired at the end of March 2024. The introduction of a levelisation allowance within the price cap will mean that Direct Debit (DD) customers will pay more per year. However, prepayment customers will pay less per year than those on DD.
The specific prepayment standing charges each customer sees will vary by region. The discount will be applied automatically to the price that is set on the meter. You do not need to contact your supplier to apply or use vouchers.
What is the energy price cap?
The energy price cap was introduced by the government in 2019 as backstop protection for customers who are on an energy tariff with standard variable rates. Electricity and gas prices are reviewed and updated by the energy regulator Ofgem. The price cap is not an actual 'cap' on your total bill, the more energy you use the more you will pay.
Price cap explained.
Understanding your energy prices can feel confusing. That’s why we’ve broken it down the energy price cap for you in this video. Plain and simple.
The energy price cap is calculated and set by Ofgem to reflect changes in industry costs and the graph below shows how these have changed since the last review. The price cap level is set for customers in England, Wales and Scotland. Retail energy prices in Northern Ireland are not subject to a cap. Ofgem review the price cap every three months.
How will the price cap affect me?
The energy price cap applies to you if you're on one of our standard variable tariffs. Between October 2022 and June 2023 residential customers were protected from the price cap rises by the government’s Energy Price Guarantee (EPG). The government's EPG ended on 31 March 2024, so from 1 April 2024 prices are determined by Ofgem’s price cap.
What support is available for E.ON Next customers?
This is a worrying time for everyone as the cost of living remains high. We understand that you may be struggling to pay and have a number of resources to help.
E.ON Next Energy Fund.
The Priority Services Register (PSR)
Government support schemes.
External debt-advice resources.
Help paying your bills with Paylink.
Health and wellbeing resources.
How can I get help from E.ON Next with making this decision?
We recommend checking your tariff online at the end of the month once any new prices have been set and waiting to contact us until then.
You can get advice from our Energy Specialists on WhatsApp. Our E.ON Next Community is also a great place to find support from other E.ON Next customers.
Energy Price Guarantee.
The government's Energy Price Guarantee ended on 31 March 2024. The price cap determines how much energy companies can charge and not the government's Energy Price Guarantee (EPG). From 1 April 2024 prices will be solely determined by Ofgem's price cap as the government's EPG is no longer available. From 1 October 2022 until 30 June 2023 the government supplemented what customers paid for energy which meant that a typical household saw an annual bill of £2,500.
Customers still paid for the gas and electricity they used. But the government's Energy Price Guarantee limited the price that we could charge for each unit of energy. The scheme didn't cap your bill at £2,500, your bill amount was still based on how much energy you used.
How the Energy Bills Support Scheme worked.
This government scheme has ended. In May 2022 the government announced several support measures to help households with rising energy bills. The main measure was £400 off electricity bills for domestic customers across England, Wales and Scotland. Known as the Energy Bills Support Scheme (EBSS) this money was credited to customers accounts from 1 October 2022. This money does not need to be paid back. There’s more information on our dedicated Energy Bills Support Scheme webpage.
Customers saw a discount of £66 applied to their energy bills in October and November, and £67 a month from December to March 2023. The scheme ended on 31 March 2023.
More of your price cap FAQ.
You’ll find more answers in our FAQ below which our Energy Specialists regularly update to help support our customers. You can also stay up to date by following us on WhatsApp.