Millions of homes in England, Scotland and Wales could pay about £700 a year more for electricity and gas after a price hike this week.
Energy experts are encouraging customers to take meter readings and submit them before the change goes into effect to save money.
From April 1, around 18 million households on standard tariffs will see an average increase of £693 – from £1,277 to £1,971 per year.
Around 4.5million prepaid customers will see an average increase of £708 – from £1,309 to £2,017.
The amount of your bill depends on how much energy you use.
Energy bills won’t increase immediately for fixed-rate customers, but many will likely see a significant increase when their business ends.
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Bills are rising because the energy price cap – the maximum price suppliers in England, Wales and Scotland can charge households – is being raised.
Energy companies can increase their bills by 54% when the new cap is introduced on Friday April 1st.
The price cap is reviewed every six months and prices are expected to rise again in October.
A report by Bank Investec warns bills could reach £3,000 a year.
Experts have encouraged people without smart meters to turn in gas and electricity meter readings on March 31, the day before bills are due this Thursday.
This allows them to capture the current, cheaper rates for the electricity they use before the switch takes place.
Justina Miltienyte, Head of Policy at Uswitch.com, says that while there’s nothing you can do to reduce energy bills, reading the meter ensures bills are accurate: “It’s always useful to update your supplier regularly to keep abreast of how much energy you’re using, but this is especially important before the April 1st bills soar.”
As a result, energy company phone lines, websites and apps could be quite busy. If you are unable to submit your readings, you should take a photo with the meter reading and meter serial number clearly visible.
More households are expected to struggle because of bill increases.
The Resolution Foundation think-tank expects the number of UK households experiencing “fuel stress” to triple to 6.3 million and says pensioners and those in council housing will be hit hardest.
It warns UK households of a “cost of living catastrophe”.
Food prices are also rising, and an April Social Security hike will burden millions with higher tax bills.
The Bank of England has hiked interest rates for the second time in three months to try to slow inflation, but it expects inflation, which measures how quickly the cost of living is changing over time, to hit 8% could.
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A global energy supply shortage has pushed up gas prices over the past year.
But wholesale prices have risen even higher since Ukraine was invaded by Russia, which is the world’s largest exporter of natural gas
Britain gets little of its gas directly from Russia, but prices could still be pushed up globally if Russian supplies to Europe were affected.
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In the past, consumers have been encouraged to shop when bills mount.
But at the moment better offers – especially fixed prices – are not available. People who already have firm offers are advised to stay there.
Otherwise, households are encouraged to improve the energy efficiency of their homes.
The Energy Saving Trust says making small changes to our homes and habits could help many people offset about a third of a rise in energy costs.
People struggling to afford energy bills can get advice from charities like Citizens Advice, Turn2Us or the StepChange Debt Charity.
All major energy companies also have hardship funds that can offer help if someone is having trouble paying.
The Government has announced that it will also offer additional aid worth a total of £350 via the council tax system in England.
The warm house discount will also be extended to three million households. It offers low-income households a one-off annual rebate on their electricity bill and was worth £140 in 2021-22.
In October, customers in England, Scotland and Wales will receive a £200 rebate on their electricity bill. You’ll have to repay this at £40 a year for five years, starting in April 2023.
The Northern Ireland energy market is separate but the Government has announced £150m would be available to support households.
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