Home / Business and Economy / Energy Cap Rises Slightly; Fix Deals Save £200
Energy Cap Rises Slightly; Fix Deals Save £200
23 Nov, 2025
Summary
- Energy price cap increases by £28 to £1,758 in January.
- Switching to a fixed deal could save households nearly £200.
- Non-wholesale costs are driving higher energy bills.
The energy price cap will see a minor increase of 0.2 per cent, adding £28 to the typical household's monthly bill in January, bringing the total to £1,758. This adjustment comes as higher non-wholesale costs, including funding for government policies like the Sizewell C nuclear project and the Warm Home Discount scheme, offset the recent fall in wholesale energy prices. Experts predict this trend of increasing non-energy costs will continue, potentially leading to larger bill hikes in April.
Despite the slight increase in the official cap, energy firms are offering fixed deals that could save consumers around £185 annually. These fixed tariffs provide a shield against potential future price rises and are recommended by regulator Ofgem as a practical way for households to reduce their energy expenditure. Switching to a fixed deal now could secure a lower rate before winter bills escalate.
Consumers are advised to compare different tariffs and payment methods, with prepayment remaining the cheapest option. The current cheapest fixed deals, such as Outfox Energy's 12-month fixed deal, offer annual savings of up to £188 compared to the January price cap. This shift towards fixed deals offers a tangible way for households to manage their energy costs amidst an evolving market landscape.
