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UK Energy Price Cap Forecast Lifted to £1,737 for October–December, Up £17

The predicted uptick reflects policy charges, chiefly an expanded Warm Home Discount.

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Overview

  • Cornwall Insight’s final projection puts the typical annual dual‑fuel bill at £1,737 for October to December 2025, a 1% rise from £1,720.
  • Ofgem is due to announce the official cap level on 27 August, and the cap limits unit prices rather than total household bills.
  • The Warm Home Discount expansion is estimated to add about £15 to a typical bill while providing £150 support to 2.7 million additional people.
  • The new prediction reverses Cornwall Insight’s July view of a fall, with consultants citing volatile wholesale markets and geopolitical uncertainty despite lower recent prices.
  • A small reduction in January remains possible, though Cornwall Insight says it depends on geopolitics, weather and future policy costs.