August Energy Outlook: What’s Happening with Home Heating and Energy Prices?

From price caps to heat pumps and solar power, here’s what you need to know this month.

Energy Bills: A Small Rise is Coming

Good news first: the energy price cap, which limits how much suppliers can charge, fell in July to £1,720 a year for a typical household. That’s 7% cheaper than in the spring. But from October, bills are expected to creep up again to around £1,737 a year. It’s only a small rise, but still a reminder that bills remain much higher than before the crisis.

If you’re worried, it’s worth keeping an eye on fixed deals, as some tariffs on the market are currently cheaper than the cap and could save you money in the long run.

Help for Vulnerable Households

The Warm Home Discount scheme is back this year, giving £150 off electricity bills to those who qualify. Around six million households will benefit, but there’s a deadline to be aware of. If you’ve moved recently, or if your name isn’t on your electricity account, make sure it is by 24th August 2025 – otherwise you could miss out.

Heat Pumps: More Scrutiny on Adverts

Heat pumps continue to be pushed by the government as a key way of cutting carbon emissions. The target is 600,000 installations a year by 2028 – but we’re nowhere near that yet. In August, some energy companies were told off by the advertising regulator for making heat pump grants sound more generous or accessible than they actually are. The message is simple: always check the small print before you commit. Government data has also shown that around 20% of UK homes are not suitable for heat pumps without major retrofit work.

Great British Energy: A New Public Company

A new government-owned company called Great British Energy is starting to take shape. Its job will be to invest in renewable energy projects, like wind and solar farms, to help bring down bills and cut carbon in the long term. You won’t see changes overnight, but it’s part of a bigger plan to make the UK less dependent on expensive imports.

Fewer Green Tariffs on the Market

If you’ve been looking for a green tariff, you may have noticed there are fewer to choose from. A year ago there were 24 green dual-fuel tariffs available, now there are just 13. Rising costs mean many households are opting for cheaper standard deals instead.

At the same time, industry experts are saying that the way energy is taxed makes electricity more expensive than it should be, which is holding back people from switching to low-carbon heating. If those costs were shifted, it could save households up to £400 a year.

What This Means for You

For now, the key things to know are:

• Energy bills are slightly down compared to earlier this year, but will rise a little in October.
  
  

• If you think you qualify for the Warm Home Discount, make sure your electricity account is in your name before 24th August.
  
  

• Be cautious with heating grants – check what’s actually available before signing up.
  
  

• Longer term, the UK is moving towards more renewables and more investment in clean energy.
  
  

Final Thought

August’s updates show that while bills remain high, there’s help out there if you know where to look, and bigger changes are slowly on the way. Whether it’s new government schemes or shifts in the energy market, being informed means you can make smarter choices for your home and your heating.

If you’d like advice on keeping your home warm and efficient, feel free to get in touch via email at [email protected] or give us a ring on 0800 5999 109.

Tags: Industry insights.