Energy prices from January 2025, and what they mean for you

Ofgem has announced that on 1 Jan 2025, the Price Cap will rise by 1% to £1,738/year for a typical use household paying by Direct Debit. Octopus remain the only large supplier to have never charged the full price cap.

We'll get in touch with every customer this affects, with a personalised breakdown of what this means for you.

Summary of changes

Only got a few minutes? Watch this video by our founder, Greg Jackson.


  • Ofgem (the energy regulator) has announced the energy price cap will rise by 1.2% for a typical home — that’s about £1.75 a month — from January 1 to March 31.
  • Unit rates are rising, due to an increase in international wholesale costs (particularly gas).
  • Once again, Octopus prices are lower. Our standing charges are the cheapest standard tariff rates of any large supplier.
  • The price cap limits the amount an energy supplier can charge for units of gas and electricity. It also impacts the standing charge which is the daily cost per fuel type and is set by Ofgem.
  • How much you're actually charged will depend on how much energy you use; so those who use more, will pay more.
  • Good to know: if you're not paying by Direct Debit, you could save a further £80 on average by setting one up with us.

If you ever find yourself struggling to pay we have lots of support on offer.

Missing out on the Winter Fuel Payment this year and worried you’ll struggle to pay your bills? Apply to receive support from Octopus instead.

Frequently Asked Questions

General

Does the energy price cap affect me?

Is the quoted figure from Ofgem the maximum price I will pay for my energy?

Payments

How could I get energy £80 cheaper by paying by Direct Debit?

Why are tariffs sometimes cheaper if I pay by Direct Debit?

What energy prices will I be paying?

Why do prices vary based on location and payment method?

What are the actual maximum unit rates and standing charges of the energy price cap?

Fixed Tariffs

I'm on a flexible tariff right now, should I move to a fixed tariff?

I’m on a fixed tariff right now, what happens when it ends?

Published on 16th January 2025 by:

image of Joe Richardson

Joe Richardson

Operations Director

Hey I'm Constantine, welcome to Octopus Energy!

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