UK energy regulator Ofgem has set the price cap for the October-December 2025 period, which will see household energy bills increase by 2% or about £35 per year. The energy price cap level is dictated by various costs including wholesale gas and electricity prices, network costs and VAT; these are split between the unit rate and the standing charge. Principal consultant at consultancy Cornwall Insight Dr Craig Lowrey said that the price cap increase will “feel very real” for households but that the Warm Homes Discount expansion was widely supported and “will be a lifeline”. Renewables and infrastructure investment could prevent future price cap increasesNotably, wholesale prices did not contribute greatly to the change in the price cap, something that will continue to be seen as the energy system is increasingly supplied by domestic renewable assets, rather than gas imported from overseas. RIIO-3 offers £80 billion transmission investmentReducing transmission costs can happen in several ways.