Go.Compare energy expert comments on the new Ofgem energy price cap

Ofgem has today, 27th August, announced that the energy price cap will increase overall by £35 to £1755, with this new price cap coming into effect on 1st October 2025. 

This reflects a 2% rise compared to the previous price cap which sat at £1,720.* 

Gareth Kloet, Go.Compare energy spokesperson, said of the new price cap announcement: “Amidst the financial strains of everyday bills and living expenses, the news that the energy price cap will increase again will be worrying news for UK households.

“Historically, as the colder weather sets in, the price cap increases in anticipation of greater energy use and demand, so it’s no surprise to see this price hike come into effect in October. There will also be rises and drops in individual standing charges and unit costs, which means that some homeowners will see even higher energy prices.

“For example, the unit cost of electricity is going up by 2.4% from 25.72p per kWh to 26.35p, so electricity-only households may see a larger increase in their monthly energy bills.*”

Gareth added: “The energy price cap is also a timely reminder to check if your current energy contract is still giving the best value for you. Using a comparison site can help you weigh up your options and decide whether you’d benefit more from the security of a fixed rate plan, or the flexibility of a variable rate that can adapt to market changes.

“The number of energy deals available has increased in recent months and as a result, it’s worth taking the time to explore what’s on offer. But before switching, make sure you review your current contract and energy use carefully. Keep an eye out for any early exit fees, as these could reduce or even eliminate any savings from moving to a new provider.” 

For more information on how to switch energy providers, Go.Compare has put together a guide which you can find here.

Even small changes can have a noticeable impact on reducing and managing your energy costs. Here are a few tips:

1. Switch off standby – Lots of appliances continue to draw energy when left on standby. Turning them off at the socket when not in use can save you a surprising amount. 
2.  Adjust your thermostat – In the colder months, reducing your heating by just 1°C can lower your annual bill significantly without making your home feel much colder. Along with a programmable thermostat to heat your home only when you need it.
3. Maximise appliance efficiency – Run your washing machine and dishwasher with full loads, use eco cycles, and opt for cooler wash settings. This not only cuts energy use but also helps your appliances last longer.
4. Improve insulation and draught-proofing – Sealing gaps around doors, windows, and floors helps keep warm air in and cold air out. Good insulation in your loft and walls can also reduce heat loss and make your home more comfortable year-round.
5. Review your energy tariff regularly – Energy markets change, and new deals often appear. Use a comparison site to see if a fixed or variable tariff better suits your needs better, and always check for any early exit fees before switching.

For more energy savings tips, visit: https://www.gocompare.com/gas-and-electricity/guide/energy-saving-tips/.