Energy price cap: Three things to do before your bills rise

Electricity bills for most households will increase on Saturday as the new electricity price guarantee comes into effect.

The increase is smaller than previously expected after the government said it would cap domestic bills to prevent widespread hardship.

But it’s still significant. A typical household’s energy bill will rise from £1,971 to £2,500 – double what it was last winter.

So what can you do to prepare for higher bills?

While most energy-saving tips don’t save enough to offset the full impact of rising bills, there are some ways to make sure you’re paying the right bills and reduce those rising costs.

Suppliers need regular readings from your gas or electricity meter to calculate your bills.

Without your metrics, suppliers estimate usage, which means your bills could be overestimated. Therefore, households are encouraged to contact their suppliers to provide them with readings via phone call, website or app.

Industry body Energy UK said there was no need to submit a meter reading yourself on October 1, as most suppliers will accept readings for a couple of days either side of that date.

However, it advised customers to check with their provider for advice when the new pricing goes into effect, as high call volume and website traffic can be expected.

For those who have never read a meter, Citizen’s Advice has information on how to recognize different meters.

You don’t need to take a meter reading if you have a working smart meter (credit or prepaid) or a fixed contract.

Those with prepay meters may be able to keep current prices through October and even November if they top up the card before October 1st. This will not work for gas meters, smart prepaid electric meters, or E.On or Scottish Power. Suppliers can also backdate these fees so it is not a guarantee.

There are also longer-term cost-cutting tips, such as: B. Insulating your home well, checking that appliances are turned off and not left on standby, and turning your thermostat down by a degree.

Make sure you get all the assistance you are entitled to.

All households will receive a one-off reduction of £400 on their fuel bill from October.

You do not need to contact your supplier about this. The rebate is automatically granted by energy suppliers in England, Scotland and Wales.

It will be spread over six months, with a £66 reduction in October and November and £67 each month between December and March 2023.

Separate regulations are in place for households in Northern Ireland, which has its own energy market.

You can use Citizens Advice’s benefit calculator to find out if there are any other funds you should claim.

Households receiving the winter fuel payment, which is worth £200-300 and is paid to almost all households with at least one person of retirement age, will receive an additional £300 in November or December. That should cover almost all UK pensioners.

In England, Scotland and Wales, all households in council tax brackets A to D or to E if a head of household has a disability are also entitled to an energy refund of £150 from their local council. Payment should be made by the end of September, so make sure you’ve received it. The Northern Ireland congregation has received a matching sum of money to administer locally.

If you’re applying for benefits like earnings-related unemployment benefits, income support, retirement credit, or universal credit, certain schemes can help you pay off your energy bills and debts directly from your benefits.

The Jobcenter Plus or the pension service can have part of the benefits paid monthly directly to the energy supply company owed.

If you can’t afford your ongoing energy bills, contact your supplier. If you have debts with your energy company, you may be able to get a grant to pay them off. British Gas, Octopus and Scottish Power are among the companies offering grants to their customers, and the charity Citizens Advice offers more guidance.

Organizations like National Debtline also offer advice and can help you check that your invoices are correct and complain about your supplier if they aren’t.

If you find yourself in debt, Citizens Advice warns that vendors have the right to force you onto a prepayment meter, which is the more expensive payment method. The charity predicts nearly half a million people could be in that position over the winter.

Although the government says a typical household can expect to earn £2,500 a year, that’s no limit to how much you’ll actually pay.

It has calculated this figure for a “typical” household using a new unit price cap of 34p per kWh of electricity and 10.3p per kWh of gas for dual-fuel customers with a standard variable tariff.

However, most households are not typical and your bill will depend on how much energy you actually use.