Households Urged to Check Energy Bills Ahead of Price Cap Rise

Millions of households across the UK are advised to review their energy bills today as prices are set to rise, with the energy regulator Ofgem expected to confirm a new price cap tomorrow. Starting from October 1, 2023, the price cap for standard variable tariffs is projected to increase by approximately one percent, impacting over 22 million households currently on these plans.

The current price cap sets annual energy costs at about £1,720. Analysts from Cornwall Insight predict an increase to £1,737, effective next month. However, many households may be paying significantly more than the reported cap, as it does not limit total bills but rather caps the maximum cost per kilowatt-hour (kWh) and daily standing charges.

Households are encouraged to switch to fixed-rate deals to safeguard against further price increases. According to Uswitch, those who act now could save hundreds of pounds. Bill payers still on standard variable tariffs are urged to consider fixed deals, which lock in stable rates for 12 or 24 months, potentially saving an average household around £255.

“Anyone still on a standard variable tariff will be paying over the odds to keep their home warm as winter starts to bite,” said Ben Gallizzi from Uswitch. “Bill payers on these tariffs can beat these expected rises and save on bills by switching to a well-priced fixed deal now.”

The cheapest fixed deal currently available is offered by Outfox Energy, with its 12-month Fix’d Dual Aug25 12M v4.0 tariff priced at £1,463 annually. This is £257 less than Ofgem’s current cap and £274 cheaper than Cornwall’s forecast for October. Another option from Outfox, the 2-year Fix’d Dual Aug25 v5.0, costs £1,465, providing similar savings.

As energy prices remain uncertain, it is important for consumers to act quickly. The best deals may be withdrawn at any moment as suppliers adjust their tariffs in response to market conditions.

Understanding the Price Cap Changes

The energy price cap is reviewed by Ofgem every three months, with adjustments made on January 1, April 1, July 1, and October 1. This means that future increases or decreases can occur at these specific times throughout the year.

To secure the best fixed-rate deals, consumers are encouraged to utilize price comparison websites such as Uswitch.com and MoneySavingExpert’s Cheap Energy Club. By entering their postcode and current energy usage, users can receive tailored lists of available deals. It is advisable to compare rates, contract lengths, and any additional benefits offered by each deal.

Consumers should also check individual energy suppliers’ websites for exclusive promotions. Sometimes, suppliers provide special offers that may not be listed on comparison sites. Additionally, considering customer service reviews can help in making an informed decision.

Support for Struggling Households

For those facing difficulties in paying their energy bills, various forms of assistance are available. Households in debt are encouraged to contact their energy supplier to explore repayment plans, allowing them to pay off outstanding amounts in manageable installments.

Many energy companies, including British Gas, EDF, E.ON, Octopus Energy, and Scottish Power, offer grants and support schemes to help customers in financial distress. For example, British Gas customers may be eligible for grants up to £2,000 through the British Gas Energy Trust and the Individuals Family Fund, which is open to non-customers as well.

Furthermore, thousands of vulnerable households might be missing out on crucial support by not enrolling in the Priority Services Register (PSR). This service provides additional help to those who are elderly, ill, or otherwise vulnerable, including advance notices of power outages and free gas safety checks.

Individuals interested in these support options should reach out to their energy provider to discuss potential assistance and ensure they receive the help they need.