October 2025 Energy Price Cap Rises: How Renewables Offer Stability Amid Volatility

As we approach October 2025, households across England, Scotland, and Wales are once again facing an adjustment to their energy bills. The energy regulator Ofgem has announced a new price cap, which will see an increase in energy costs for many. At 21 Degrees, we understand the impact these changes have on your household, particularly as we head into the colder months. While these fluctuations can be concerning, they also underscore the crucial need for embracing sustainable energy solutions for long-term stability and control.

Understanding the New Energy Price Cap

The energy price cap is a regulatory measure established by Ofgem to limit the maximum prices suppliers can charge for each unit of energy and the daily standing charge on standard variable tariffs. This mechanism aims to protect consumers from excessive charges while fostering a competitive market. The cap is reviewed every three months.

For the period covering October 2025, energy costs for a typical household using electricity and gas and paying by Direct Debit are set to rise to £1,755 annually, adding approximately £3 to the average monthly bill.

This adjustment upward is attributed to rising wholesale energy costs, increased regulatory assessments, and fluctuating energy market dynamics. Furthermore, consumers can expect a rise in standing charges, which are fixed daily costs covering network maintenance and government schemes.

The Lingering Burden on Households

This impending price rise means another winter of relatively high energy bills for many. Families are still struggling to manage their bills and repay energy debts accumulated during periods of historically high prices. The volatility of traditional energy sources means consumers frequently experience fluctuating prices, and external factors like global events can significantly impact the cap.

Beyond Fluctuations: The Power of Renewables

While the Energy Price Cap provides temporary relief with its reductions, the consistent volatility of traditional energy sources highlights the enduring importance of sustainable energy solutions. At 21 Degrees, we recognise that while reducing the Energy Price Cap offers short-term relief, investing in renewable energy sources and energy efficiency initiatives is crucial for a sustainable and resilient energy future. The UK has made significant strides in embracing renewables at a national level, with over 40% of the country’s electricity now coming from renewable sources, up from just 7% in 2010. This national effort reduces demand for gas and can help drive prices down.

As consumers, we too can take the lead for our homes by embracing renewables and low-carbon technologies. This not only further reduces energy bills and reliance on the grid but, most importantly, significantly lowers our household carbon footprints.

Why Choose Renewables with 21 Degrees?

Our customers tell us there are five key reasons they choose renewables, moving beyond mere financial savings to gain a deeper sense of freedom, security, control, wisdom, and the satisfaction of doing good.

• Freedom: Installing a solar and battery system allows you to generate your own electricity, reducing dependence on the grid and shielding you from market fluctuations and potential energy price rises. You can rely on self-generated power unaffected by market conditions.
• Security: Solar and battery installations provide increased energy security. During power outages, a battery system can store excess energy generated during the day for continuous power supply, reducing vulnerability to supply disruptions.
• Control: Renewables give you greater control over your energy costs. Once installed, the cost of generating electricity from the sun remains relatively stable, protecting you from unpredictable price rises. You can also earn money by feeding excess electricity back into the grid. Battery storage allows you to store energy during low-demand periods and use it when prices are higher, helping you avoid peak-time pricing.
• Wisdom: Our customers appreciate the greater knowledge they gain about their energy consumption through apps that show real-time usage, electricity production from panels, and stored energy levels. This empowerment helps them see how much money they save by being environmentally responsible.
• Feeling Good for Doing Good: Beyond financial benefits, there's a profound emotional reward in investing in your home, family, and the environment. Our customers often choose renewables not just to save money, but to reduce their environmental impact and leave a positive legacy for future generations.

At 21 Degrees, we are pioneers of the sustainable energy revolution. We offer a range of products and design services to empower homeowners, architects, and businesses to harness their own sustainable energy and create better performing buildings from a carbon, cost, and comfort perspective.

Take Control of Your Energy Future

The Energy Price Cap will continue to be news repeatedly, with traditional energy prices fluctuating for reasons outside our control. However, renewable and low-carbon technologies offer a tangible path to meeting basic human needs like security, control, freedom, wisdom, and happiness.

Don't wait for the next price cap announcement to act. We see today's news as a catalyst to inspire and empower households to realize the benefits of lower energy bills and how renewables can make them even lower. Choosing renewable technology for your home is a big decision, but it's an investment in more than just financial capital; it’s an investment in environmental and social capital too.

If you want to discuss your options for improving the energy performance of your home and making your life more sustainable, get in touch with our expert team today. We are here to help you transform your home and empower you to a more sustainable and stable energy future.

The 2025 Price Cap Summary

What’s Changing This October?

From 1 October 2025, the price cap will rise by 2%. This means:

• The average household on a dual-fuel tariff will see bills increase from £1,720 to £1,755 per year.
• That’s around an extra £35 per year, or just under £3 per month.

Why Are Bills Rising Again?

This increase is not being driven by wholesale energy prices. Instead, the main factors are:

• Network and policy costs – the cost of maintaining and upgrading energy infrastructure.
• Expanded government support schemes – such as the Warm Home Discount, which now helps 2.7 million extra vulnerable households. While this adds around £15 to the average bill, it provides £150 of support for those most in need.

How Much Will Households Pay?

While the average increase is modest compared to the huge jumps seen in 2022–23, it still adds to the ongoing cost-of-living pressures many households face. Energy debt remains high and standing charges—particularly for electricity—continue to be a burden even for households that use less energy.

What’s Next?

Ofgem will announce the next cap review in November, which will apply from January 2026. In the meantime, households face yet another reminder that energy costs remain unpredictable.

The best way to take control of your energy future is to generate and store your own. Solar panels and batteries put the power back in your hands.

If you’d like to explore how much you could save with solar and battery storage, or on any of our renewables, contact 21 Degrees today.