Energy costs in Wales – how much will they rise by and what help is there?

With colder weather on the way, millions of households in Wales face another spike in energy costs.

From 1 October, 2025, the price for energy for a typical household will go up by 2% to £1,755 per year.

Bills are significantly lower than they were at the peak of the energy crisis, but another winter of high energy bills, coupled with rising food costs, will be a cause of concern for many.

We take a look at what help is available from the Welsh and the UK government.

The Welsh government estimates that one in four households in the country were living in fuel poverty this time last year, meaning they spent more than 10% of their total income on keeping their home warm.

Moreover, fuel poverty charity National Energy Action claimed 83% of all Wales’ lower-income households were in fuel poverty last winter – with almost a quarter of those households in severe fuel poverty, spending more than 20% of their income on energy bills, the charity said.

For those in extreme hardship, the Discretionary Assistance Fund provides grants to help pay for gas and electricity.

The Welsh Government is also providing funding to the Fuel Bank Foundation, a charity which supports people who have to pre-pay for their fuel and are at risk of disconnection. The charity can provide emergency financial assistance.

More generally, the Welsh government’s Warm Homes programme funds energy efficiency improvements via its Nest scheme.

Energy regulator Ofgem says the energy costs are rising because transporting energy has become more expensive, and because the government needs to cover the cost of its energy policies.

Those policies include providing extra financial support for people on benefits, as well as the cost of switching generators, such as windfarms, on and off – to maintain overall supply and demand.

Policies in place to help those struggling with bills include the Warm Home Discount scheme, which offers low-income households, and those vulnerable to cold-related illness, a one-off energy bill rebate of £150.

The scheme reopens in October 2025, with electricity suppliers applying the discount directly to bills of those eligible, which usually happens automatically.

Those on a pre-pay, or pay-as-you-go, electricity meter can also get the discount if they are eligible – for example via a voucher to top up the meter.

Older people will receive a winter fuel payment to help pay for heating bills. Individuals of state pension age, up to 79 years old, who are not living with another eligible person, will receive £200, while single householders aged 80 or older receive £300.

Only pensioners with an annual income of £35,000 or less will be eligible for the payment. They will receive a letter to say how much they will receive in October or November, with payment due in November or December.

A Cold Weather Payment, helps people on certain benefits if the temperature drops to, or below zero, for seven consecutive days. Those eligible will get £25 for each 7-day period of very cold weather between 1 November 2025 and 31 March 2026.

The energy price cap – how much an energy supplier can charge for each unit of energy, and for connecting customers to a gas and electricity supply – is reviewed every three months.

The current charges are in place until January.