Debate on the future of the gas grid
A Westminster Hall debate has been scheduled for 18 June 2025 on the Future of the gas grid. The debate will be opened by Josh Newbury MP.

Energy prices have fallen since summer 2023, but are still well above pre-'energy crisis' levels and there is little prospect of large cuts to bills in the near future.
Gas and electricity prices during the 'energy crisis' and beyond (482 KB , PDF)
Global prices for gas, electricity, oil and other fuels started to increase from summer 2021 when economies began opening up after pandemic related-lockdowns. This underlying increase was magnified by reduced supply of fuels from some producers and increased tensions between Russia and Ukraine.
Prices increased further in late 2021/early 2022 and spiked after Russia launched a full-scale invasion of Ukraine on 24 February 2022.
Source: nationalgrid.com Prevailing View tool (system average price)
The first major impact on domestic customers in Great Britain (those on standard variable tariffs and hence covered by the energy price cap) was a 54% increase in the price cap in April 2022.
Wholesale prices for gas and electricity reached new record highs in the UK, Europe and elsewhere during this ‘energy crisis’ and have still not returned to their earlier levels.
The crisis led to an unprecedented response from governments across Europe. In the short term this was mainly to support consumers facing much higher prices and, for some, to move away from Russian fossil fuels. Medium to longer term policies in the EU and UK aim to reduce dependence on imported fossil fuels more generally.
Source: Ofgem, Energy price cap levels 1 July to 30 September 2025. Final levelised cap rates model (Annex 9)
The record prices in 2022 would have led to an 80% increase in the energy price cap in Great Britain without intervention from government. The Energy Price Guarantee limited the increase to 27% in October 2022 and meant that domestic consumers paid less than they would have under the price cap until July 2023.
Under the April to June 2025 direct debit price cap the average annual bill for typical gas and electricity consumption is £1,849. This is well below the peak level of £2,380 level under the Energy Price Guarantee from October 2022 to June 2023, but still 43% higher than in Winter 2021/22.
The price cap will fall by 7% in July 2025 .
Under the current direct debit cap the average price of gas is 7.0 pence per kilowatt hour (p/kWh), the average price of electricity 27.0p/kWh. Average standing charges are 32.7p/day for gas and 53.8p/day for electricity.
Source: Ofgem, Energy price cap levels 1 July to 30 September 2025. Final levelised cap rates model (Annex 9)
UK domestic gas prices in the second half of 2024 were below those in 16 EU countries. UK electricity prices were higher than in all but three EU states (Germany, Denmark and Ireland). Electricity prices in the UK have gradually become more expensive than in most other EU countries. In the early 2000s domestic electricity prices were the second lowest in the (then) EU 15.
Gas prices in the UK were 34% below the EU average and electricity prices 19% above the EU average in the second half of 2024. The ratio of electricity to gas unit prices in the UK was higher than in any EU country at the time.
UK consumer prices for gas and electricity increased at a much faster rate than the EU average in 2022. Price falls in the UK in 2023 happened later than in most of the rest of Europe.
For more detail on international price comparisons of household energy prices see section 7 of the Library briefing Domestic energy prices.
Following concerns over the effect of a proposed 80% increase in the energy price cap, then Prime Minister Liz Truss announced that the Energy Price Guarantee (EPG) would be introduced from 1 October 2022 and last two years. This was the government’s main measure to reduce the impact of the ‘energy crisis’ on consumers.
The EPG’s aim was to reduce the extent of price increases for domestic customers. Under the scheme, the government set maximum prices for gas and electricity which were below those under the existing price cap. The government compensated energy suppliers for selling at below cap prices.
Maximum energy prices for customers on standard variable tariffs were set by the lower of the EPG or the energy price cap. The EPG was lower during the period October 2022 to June 2023, so set maximum prices during this time.
The falls in the price cap since in July 2023 meant the EPG was not needed again and it ended in March 2024.
The EPG and price cap are normally expressed as an annual figure. This is the annual bill that dual fuel (gas and electricity) direct debit customers with typical consumption levels would face if these prices remained constant across a year. Annual bills are not capped. Households that use more energy will pay more, those which use less will pay less.
The EPG level was originally set at £2,500 a year for two years from October 2022 to September 2024. It was later changed to £2,500 for the first nine months (October 2022 to June 2023) followed by an increase to £3,000 for the following nine months (July 2023 to March 2024). These annual figures were based on the higher assumed ‘typical’ consumption levels from the time. £2,500 on these consumption levels was equivalent to £2,380 for the new lower consumption figures which are now used for these illustrations.
Prices vary by region and are higher for customers paying by quarterly bills.
The price increases under the EPG were softened for the first six months by the £400 Energy Bill Support Scheme. This was paid in six separate monthly instalments from October 2022 to March 2023. The government announced on the morning of the Spring Budget 2023 (15 March 2023) that the planned 20% increase in the EPG would be delayed from April to July 2023.
Without the EPG, customers would have paid more under the price cap between October 2022 and June 2023.
Wholesale energy prices fell in late 2022 but there was a substantial lag before these fed through to consumers. The reduction in the price cap in April 2023 was not large enough to take it below the EPG level, so customers did not see their bills fall until the cap fall at the time.
The price cap for July to September 2023 was £1,976. Unit prices were 27% lower than under the EPG for gas and 9% lower for electricity. As its annual level was lower than the EPG, customers on standard variable tariffs saw prices fall for the first time since October 2020.
The cap fell further to £1,834 In October 2023. It increased to £1,928 in the first quarter of 2024. As these levels were below the EPG, this mechanism was not needed to set maximum prices again before it ended in March 2024.
The April to June 2024 cap fell to £1,690 for customers with typical consumption levels. Average unit prices for gas and electricity both fell by 9%. Average standing charges increased by 13% for electricity and 6% for gas.
The July to September 2024 cap was £1,568, with unit prices for gas falling by 19% and electricity by 14% and standing charges remained unchanged. The October to December 2024 cap was £1,717. Unit prices for gas increased by 14% and electricity by 10%. Standing charges increased very slightly. The January to March 2025 cap is £1,738. Unit prices for gas increased by 2% and electricity by 1%. Standing charges were unchanged.
The April to June cap is £1,849. Unit prices for gas increased by 10% and electricity 9%. Standing charges fell by 12% for electricity and increased by 3% for gas.
Wholesale prices increased in much of 2024 and early 2025 and this was reflected in the increases in the cap in late 2024 and the first half of 2025. Lower wholesale prices from mid-February 2024 mean the cap will fall in Q3 2025. Unit prices for gas will fall by 9.4% in July 2025 and electricity by 4.8%. Standing charges will fall by 9% for gas and 5% for electricity.
Despite the fall in prices in late 2023 and much of 2024, typical bills under the July to September 2025 price cap will still be 42% higher than in winter 2021/22.
The cap is currently forecast to remain broadly unchanged in the fourth quarter of 2025. Forecasts of the price cap are uncertain so there is no guarantee that prices fall at this time.
With little immediate prospect of savings from fixed tariffs or substantial further cuts in the price cap, the only way to substantially reduce energy bills, while still adequately heating and powering homes, is to improve the energy efficiency of properties.
Energy prices in Northern Ireland are not controlled by the price cap and only a minority of households use mains gas for heating. The government provided support for customers in Northern Ireland which was said to be equivalent to the EPG. This resulted in the largest electricity supplier in Northern Ireland cutting prices in November 2022 to below those in the rest of the UK. However, reduction in this support from April 2023, and its ending from July 2023, led to price rises in Northern Ireland in 2023. Since October 2023 the cheapest prices from Northern Ireland’s largest supplier have been higher than prices under the cap in the rest of the UK.
Ofgem introduced new lower Typical Domestic Consumption Values (TDCVs) for all its relevant publications from October 2023. This takes the assumed typical level of gas consumption down from 12,000 kWh per households per year to 11,500 kWh and typical electricity consumption from 2,900 kWh to 2,700kWh.
This change makes an average bill for typical consumption look lower, even if prices per unit of energy are unchanged. However, it does not have affect trends in prices or bills.
Most statistics included in this briefing use the new lower TDCVs. Where relevant, ie. for discussion of EPG levels, data on average bills is presented using both the current and the old TDCVs. Unit prices are also included as these are not affected by assumptions about TDCVs.
The Library briefing Domestic Energy Prices includes more analysis of the causes of recent prices rises, historical data and information on prices of other domestic fuels. Households off the gas-grid and prices for alternative fuels looks at prices of fuels for households that do not use mains gas for heating and compares changes in their prices to those for mains gas.
The briefing Energy efficiency of UK homes presents data on energy efficiency levels across the nations of the UK, variations by different types of properties and households, insulation measures and government funded/mandated energy efficiency schemes.
Introduction to the domestic energy market explains key concepts in the domestic energy market and looks at how the market is structured, how bills are calculated and the challenges facing energy supply. The insight Why is cheap renewable electricity so expensive? Looks at how prices are set on the wholesale market.
The briefing Constituency casework: Government support for energy bills includes answers to frequently asked questions about government help with energy bills. Help with energy efficiency, heating and renewable energy in homes includes information on financial support available to install these measures.
The data dashboard Local area data: fuel poverty gives fuel poverty statistics for constituencies in England and local authorities in Scotland, Wales and Northern Ireland. Constituency data: Households off the gas grid shows patterns of connection to the gas grid for constituencies in Great Britain. Constituency data: Energy efficiency includes data on energy efficiency measures and ratings.
Ofem’s latest assessment of the state of the retail energy market looks at data on prices, suppliers/resilence amd quality/standards.
Gas and electricity prices during the 'energy crisis' and beyond (482 KB , PDF)
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