Energy Bills to Rise by More Than Expected This Winter

Rising Energy Costs This Winter

Ofgem has confirmed that energy bills for millions of UK households will rise again this October, with the energy price cap increasing by 2%. While this may sound like a modest change, it is the latest reminder of how volatile energy costs remain. For businesses and organisations, the challenge is even greater, as unlike households they are not protected by a price cap, meaning their exposure to wholesale price fluctuations is much higher.

What the Ofgem Price Cap Means

From October to December 2025, a typical household will pay around £1,755 per year, based on average usage. The rise is due in part to additional government support schemes such as the Warm Home Discount, higher network costs, and the balancing of the UK’s power grid. Standing charges are also set to increase, with gas standing charges rising by 14% and electricity by 4%. While these figures apply to domestic customers, the underlying issue is the same for all energy users including businesses and public sector organisations: wholesale costs, network fees, and government levies continue to drive unpredictability in energy bills.

The Impact on Businesses

Although businesses don’t fall under the Ofgem cap, they face the knock-on effects of the same cost pressures. Food and other essentials are also rising, putting additional strain on operating budgets. Energy remains one of the most unpredictable overheads, making financial forecasting difficult and increasing pressure to find more stable alternatives.

Comparing Inflation Trends to Energy Pressures

UK inflation rose to 3.8% in July 2025, the highest rate since January 2024. The increase was driven mainly by higher travel costs, groceries, and energy prices. This broader inflationary trend is intensifying pressure on both households and businesses, particularly as commercial users remain unprotected from volatile energy bills.

On top of rising inflation, businesses are also facing higher operating costs from recent policy changes, including the National Living Wage increase to £12.21 per hour in April 2025 and the rise in employer National Insurance contributions to 15% this tax year. Even if inflation begins to ease later in 2025, prices are unlikely to fall, they will simply rise more slowly, keeping budgets under sustained pressure through the winter.

Why Solar PV and Energy Storage Offers Stability

As Energy Minister Michael Shanks MP recently highlighted, solar is one of the fastest and most affordable ways to cut bills, making renewable energy central to lowering costs for UK households and businesses. At SolarSense, we help companies across the UK cut their reliance on the grid and take control of rising energy costs. By adopting clean energy technologies such as solar PV and battery storage, businesses can turn rising energy costs into a competitive advantage:

Fixed energy costs – Businesses can forward-buy electricity at around 5p per kWh, compared with grid prices typically exceeding 25p.

Protection from future increases – Solar provides stable, predictable savings over the long-term, shielding businesses from volatile market prices.

Greater resilience – Coupled with battery storage, solar PV will safeguard your business against price spikes and supply instability.

Sustainability gains – Clean on-site energy generation directly reduces emissions and supports Net Zero and ESG strategies.

A Long-Term Solution

While government support schemes such as the Warm Home Discount help the most vulnerable households, they don’t address the root problem: our reliance on expensive, imported energy. Expanding renewable generation is the most effective way to stabilise costs for the long-term.

The increase in energy prices taking effect in October 2025 is another reminder that the UK energy market remains unpredictable. For households, it means higher bills and for businesses, it brings ongoing exposure to much greater risks. SolarSense helps organisations to take control of their energy future with on-site renewable generation, battery storage, and innovative funding solutions such as Solar as a Service, delivering clean energy with no upfront cost, guaranteed long-term savings, and protection against volatile market prices.