Will Energy Bills Drop in 2025 UK Gas and Electricity Price Forecast

Will Energy Bills Drop in 2025 UK Gas and Electricity Price Forecast

Rising and falling energy bills have been the biggest financial concern for UK households over the past two years. With Ofgem confirming that the energy price cap fell to £1,720 from July 2025, millions of homes have finally seen some relief. But new forecasts from Cornwall Insight, British Gas, and EDF suggest that this dip may be short-lived, with bills expected to rise again in the final quarter of the year.

For families already stretched by the cost of living, the question remains: how can you protect your home and wallet from future increases? That’s where Reliant Energy Solutions comes in, helping households across the UK lower energy consumption, access government-backed funding, and prepare for long-term savings.

The Current Energy Price Cap – What You’re Paying Now

As of July 2025, households on standard variable tariffs paying by direct debit are facing an average bill of £1,720 per year, down from £1,849 earlier in the year.

  • Electricity (2,700 kWh/year): £905.74 
  • Gas (11,500 kWh/year): £831.33 
  • Total (dual fuel): £1,720 

This reduction is welcome, but the price cap is not a maximum bill. It only caps the unit rates and standing charges. If your household uses more energy than the average, your bill will be higher.

What’s Next? Q4 2025 Forecasts Point to Rising Costs

Unfortunately, forecasts suggest that this short-lived dip may reverse:

  • Cornwall Insight (Aug 2025): Predicts a 1% rise to £1,737 in October–December. 
  • EDF (Aug 2025): Expects a 1.2% rise to £1,740. 
  • British Gas (Aug 2025): Warns of a 2.3% rise to £1,760. 

The main drivers behind these increases include:

  • Expansion of the Warm Home Discount scheme (helping 2.7M vulnerable households but adding ~£15 to bills). 
  • Volatile wholesale energy prices due to global geopolitical uncertainty. 
  • Rising standing charges (Ofgem is reviewing how they’re calculated). 

With these factors, it’s clear that bills will remain unstable well into 2026.

How Reliant Energy Solutions Can Help You Beat Price Cap Increases?

While you can’t control Ofgem’s decisions or wholesale prices, you can control how much energy your home consumes. Reliant Energy Solutions works with local councils, community groups, and government schemes to deliver funded energy efficiency upgrades that permanently lower your bills.

Here’s how we can help:

ECO4 Boiler Upgrades & Replacements

If your boiler is old or inefficient, it could be wasting hundreds of pounds a year. Through the ECO4 scheme, Reliant installs new A-rated boilers at little to no cost for qualifying households.

Home Insulation Services

Poor insulation means heat escapes quickly, forcing you to use more energy. Reliant provides:

  • Loft insulation 
  • Cavity wall insulation 
  • Solid wall insulation 

These improvements can cut heating demand by up to 35%, keeping homes warmer for less.

Renewable & Low-Carbon Heating

We also help homeowners explore air-source heat pumps and other renewables that reduce carbon footprints and prepare for future Carbon Passport requirements in the UK.

Partnering with Local Authorities

Reliant works hand-in-hand across the UK including councils, housing associations, and community energy hubs—to deliver government-backed schemes to the households that need them most.

Should You Fix Your Energy Tariff or Stay Variable?

One of the biggest debates for households is whether to fix energy rates now or ride out the price cap. Ofgem encourages comparing options carefully:

  • Fixing locks in certainty, but risks paying more if prices fall again. 
  • Variable tariffs track the price cap, which means they will rise in October but could fall in January. 

We advises that whichever tariff you choose, the best long-term protection is reducing your overall energy consumption through efficiency upgrades.

From Price Caps to Net Zero

Experts like Cornwall Insight emphasize that lasting relief on bills won’t come from short-term price caps, but from the UK’s transition to clean power and energy independence.

That’s why Reliant Energy Solutions is committed to:

  • Reducing reliance on imported gas. 
  • Supporting UK net zero targets by 2050. 
  • Helping households adopt sustainable energy technologies today. 

Take Control of Your Energy Future with Reliant

Waiting for Ofgem or energy giants like British Gas and EDF to bring down bills isn’t a long-term strategy. The real solution lies in making your home more efficient now.

Reliant Energy Solutions works with local councils and UK homeowners to deliver boiler upgrades, insulation, and energy-saving services—often fully funded through government schemes like ECO4.

Contact Reliant Energy Solutions today to check your eligibility and start cutting your bills before the next price cap rise.

Final Word
Energy bills may go up again this winter, but with Reliant Energy Solutions, your household can stay ahead of the curve, lower costs, and future-proof your home against rising prices.

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