Energy bills to rise tomorrow – how to get support if you’re struggling
Energy bills are set to rise again this week. As of tomorrow (1 October), electricity and gas bills will increase by 10% in England, Scotland and Wales. The price cap does not apply to Northern Ireland which has its own energy sector.
How much more will we be paying?
The rise means the annual dual-fuel bill paid by direct debit for a ‘typical household’ will be £1,717 a year. The 10% increase will add around £12 per month to the average household bill.
Ofgem’s cap assumes a typical household uses 2,700 per kilowatt hour (kWh) of electricity and 11,500 kWh of gas a year, and pay one bill for both by direct debit.
An average household paying bills every three months by cash or cheque will be looking at shelling out £1,829 a year.
Gas rates
If you’re on a standard variable tariff (default tariff) and pay your bill by direct debit, you’ll pay an average of 6.24 pence kWh. The daily standard charge across England, Scotland and Wales is 31.66 pence, including VAT.
Electricity rates
If you’re on a standard variable tariff and pay your electricity bill by direct debit, you will pay an average of 24.50 pence per kWh. The daily standing charge for electricity across England, Scotland and Wales is 60.99 pence, including VAT.
What is the energy price cap and why does it change?
The energy price cap limits the amount an energy supplier can charge customers for their default tariffs. The cap includes the standing charge and the price per electricity and gas unit.
The energy regulator, Ofgem, first introduced the price cap in 2019 in response to concerns about the impact of rising bills on households and to protect customers from volatile and skyrocketing wholesale energy prices.
The price cap is reviewed by Ofgem every three months, so the current rates will run until 31 December 2024.
The default tariff is the most basic tariff a supplier offers. The most common is a ‘standard variable’ tariff, which means the amount you pay can go up or down in line with price changes. Your supplier should notify you of price changes in advance.
The price of gas and electricity is affected by wider geopolitical issues, including conflict and climate change. In the summer of 2021 when lockdown measures were eased after the pandemic, global prices started to rise due to an increase in demand. Costs increased further following Russia’s invasion of Ukraine in February 2022.
As Britain has lower amounts of gas storage than continental Europe, greater amounts have to be bought in at high prices.
Should you submit a meter reading before 1 October?
Almost 10 million households on a standard variable tariff, as opposed to a fixed deal, who do not have a smart meter installed, are advised to submit a meter reading.
If you don’t submit a reading, your supplier will estimate how much usage was on the cheaper price and how much was on the new, more expensive price. They could assume more was on the expensive price, meaning your bills are higher than they need to be. By doing a meter reading, you will be billed the correct amount.
Should you fix your energy tariff?
Fixed price deals offer security for a set period, typically a year but sometimes longer. With prices rising, Ofgem says people should consider fixed deals. But, if prices drop, you could find yourself stuck on a higher rate. The energy regulator, therefore, advises people to seek independent advice before committing to a fixed deal.
What will happen if I use a prepayment meter?
From 1 October, if you use a prepayment meter, you will pay slightly less than households on direct debits. The typical prepayment bill will be £1,669 a year, a £147 increase.
When is the next energy price cap review?
The next price cap review will be published by 25 November 2024. It will set out the cost from the period 1 January to 31 March 2025.
What support is available if you are in energy debt?
According to a new YouGov poll on behalf of the fuel poverty charity National Energy Action, almost half of British adults will ration their energy usage this winter. 45% on low incomes said they found it difficult to pay for their energy last year, before the latest price rise.
If you are struggling to pay for your energy bills, or top up your prepayment meter, you might be able to get support. The support you receive will depend on:
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the type of energy you use
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how you pay for your energy
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if you claim benefits
Reach out to your supplier
Getting in contact with your energy supplier might be your first step. Some suppliers provide grants if you’re really struggling, or may be able to put you on a payment plan for the money you owe.
Priority services register
Energy suppliers and network operators keep a priority services register. You can ask to join the register if have reached state pension age, are pregnant or have young children, or struggle with speaking or reading English.
Joining the register will mean you can get a range of help and support including priority support in an emergency, regular meter reading services, and assistance in reconnecting your gas supply, if you need it.
Grants for energy-saving home improvements
You may be able to get help with things that will make your home more energy efficient, such as a new boiler, insulation and improvements to your heating. The different types of funding include:
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the energy company obligation (ECO) scheme
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the great British insulation scheme (GBIS)
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the home upgrade grant scheme - if you don’t use mains gas to heat your home
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the boiler upgrade scheme
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the connected for warmth insulation scheme
Household support fund
The household support fund (HSF) offers financial help to people facing hardship. You might be able to get money towards food and energy costs.
You can apply for the HSF through your local council.
Warm home discount
The warm home discount scheme is a one-off discount on your electricity bill. Payments are automatic so you don’t need to apply.
Winter fuel payment
If you’ve reached state pension age and get certain benefits, you may be eligible for a winter fuel payment. If you’re eligible and under the age of 80, you’ll receive a one-off payment of £200. This rises to £300 if you’re over the age of 80.
Fuel voucher
If you can’t afford to top up your prepayment meter, you may be able to get a fuel voucher. The voucher will add credit to your gas or electricity meter. Contact your local council, food bank or Citizens Advice to find out more about fuel vouchers.
For more information on steps to take if you’ve fallen behind with your gas and electricity bill payments, read our guide on what to do about energy arrears.
Gabrielle Pickard Whitehead
Gabrielle is an experienced journalist, who has been writing about personal finance and the economy for over 17 years. She specialises in social and economic equality, welfare and government policy, with a strong focus on helping readers stay informed about the most important issues affecting financial security.
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