UK Energy Bills Set to Increase: Key Changes for British Gas, OVO, EDF & Octopus Users

Millions of UK households will see their energy bills rise in April 2025, following Ofgem’s latest price cap increase.

The energy regulator has confirmed that the price cap will rise by 6.4%, impacting customers of British Gas, OVO Energy, EDF Energy, and Octopus Energy, among others.

With energy costs already a concern for many, this increase means higher monthly bills for those on standard variable tariffs.

Here’s everything you need to know about what’s changing, why it’s happening, and what steps you can take to reduce your energy costs.

Why Are Energy Bills Increasing?

The energy price cap, set by Ofgem, dictates the maximum price per unit of energy that suppliers can charge customers on default or standard variable tariffs. The new increase will take effect on April 1, 2025, bringing the average annual energy bill from £1,738 to £1,849 for a typical household.

Reasons Behind the Increase:

• Higher wholesale energy costs: Fluctuations in gas prices and electricity production costs have driven the price cap adjustment.
• Rising operational expenses: Energy suppliers cite infrastructure maintenance and network investment as contributing factors.
• Global supply chain issues: Geopolitical events and colder weather in Europe have affected gas storage levels, impacting pricing.

How Will This Affect Customers of Major Energy Suppliers?

British Gas

As the UK’s largest energy supplier, British Gas customers on standard variable tariffs will see their rates increase under the new price cap. Customers on fixed-rate deals won’t be affected until their contract ends, at which point they may need to renew at higher rates.

OVO Energy

OVO Energy, known for its sustainable energy solutions, will also implement the new rates for variable tariff customers. Customers are encouraged to review their tariffs and consider switching to a fixed plan if available.

EDF Energy

EDF customers will experience the same price increase under the cap. EDF offers energy-saving advice and budget-friendly options to help customers manage costs.

Octopus Energy

Octopus, known for its flexible tariffs and renewable energy offerings, will adjust its pricing in line with the cap. However, the company encourages customers to explore their Tracker Tariffs, which may offer better rates based on market fluctuations.

What Can You Do to Manage Rising Costs?

While you can’t control the price cap, you can take steps to reduce your energy bills:

1. Consider Switching Tariffs

• Check if a fixed-rate tariff is available, which can shield you from future price increases.
• Some providers offer time-of-use tariffs, which provide cheaper rates during off-peak hours.

2. Improve Energy Efficiency at Home

• Turn down your thermostat: Reducing it by just 1°C can save up to £100 per year.
• Use energy-efficient appliances: LED bulbs and efficient heating systems can reduce electricity consumption.
• Install insulation: Proper insulation reduces heat loss and lowers heating costs.

3. Check for Financial Support

Some households may qualify for additional government energy support schemes, such as:

• Warm Home Discount Scheme: A one-off discount on electricity bills for eligible low-income households.
• Cold Weather Payments: Financial aid during periods of exceptionally cold weather.
• Household Support Fund: Assistance for vulnerable households via local councils.

What’s Next for Energy Prices?

While this price cap increase will take effect in April 2025, Ofgem reviews the price cap quarterly. If wholesale energy prices stabilize, we could see adjustments in the next July 2025 update. However, if energy costs remain high, further increases are possible.

Customers should monitor energy market trends and be prepared for potential changes by staying informed about future price cap updates.

Final Thoughts: How to Stay Ahead of Rising Costs

The April 2025 price cap increase is another financial burden for UK households. Customers of British Gas, OVO, EDF, and Octopus Energy must brace for higher bills, but proactive energy management can help minimize the impact.

By switching to a competitive tariff, improving energy efficiency, and seeking government support, you can better navigate the rising costs and maintain financial stability.

For the latest updates, visit Ofgem or check with your energy provider’s website for specific advice on managing your bill.

Key Takeaways:

• Energy price cap rises by 6.4% in April 2025
• British Gas, OVO, EDF, and Octopus customers on variable tariffs will pay more
• Fixed-rate tariffs may offer stability against future increases
• Check for government support like Warm Home Discount and Cold Weather Payments
• Improve home energy efficiency to reduce costs

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.