Energy bills are rising – but millions could save £155 a year by switching gas and electricity suppliers NOW
ENERGY bills have gone up again just as colder weather hits – but millions could save cash by switching now.
The energy price cap has jumped from £1,568 to £1,717, meaning bills have risen by ten per cent and the average household bill is up by more than £12 a month, or £149 a year.
It’s not as bad as last year, when the price cap soared to £4,279, luckily offset by the Government’s Energy Price Guarantee, which reduced bills.
But there are still ways you can save money on your energy costs . . .
WHAT IS HAPPENING WITH BILLS? More than 27million households saw costs rise this week due to the new price cap.
The price cap does not limit bills. You still pay for each unit of gas and electricity but it does provide an estimate for an average household.
The more energy you use, the higher your bills will be.
The price cap changes again in January, when the most recent prediction by experts is that it will fall by one per cent.
This week, energy consultancy Cornwall Insight said it expects the typical household’s energy bill to drop to an annual £1,697 a year from January 1.
But this is still eight per cent more expensive than the best fixed deals being offered by energy firms.
The price cap is reviewed every three months, so January’s cap will be confirmed by November 25.
But you don’t need to wait to save money, as you can act now.
SWITCH NOW TO SAVE MONEY: You can switch to a fixed deal and save money as a handful of suppliers are offering deals that are CHEAPER than the new price cap. They will still save you money if bills go down the predicted one per cent in January.
The current cheapest fix is from Outfox The Market and it costs £162 less than October’s price cap.
That means it is £142 cheaper than the predicted price cap for January. It is fixed for 12 months and if you want to leave before the end of the contract, it would cost £50 for gas and electricity.
Other suppliers such as OVO Energy, British Gas, EDF Energy and Octopus Energy offer tariffs that save you £100 a year.
Fixing is a gamble as you are locked into the tariff until prices end.
Before switching, rem – ember to check exit fees and how long you will be tied in for. Some suppliers may also require you to fit a smart meter to access their best deal.
Always compare prices, and use uswitch.com or moneysavingexpert.com.
You will need your address, current energy supplier, usage and how you pay.
TAKE A METER READING: If you are on a standard variable tariff rather than a fixed deal, and do not have a smart meter, then you need to submit a gas and electricity reading as soon as possible.
It will ensure you do not get inaccurately billed at higher prices.
Check when you need to submit the reading. For example, British Gas customers have until October 14, whereas EDF Energy customers have until October 9.
You should do this even if you are planning to switch.
GET FINANCIAL HELP: Energy firms offer grants to customers who are struggling to pay their bills.
For example, British Gas has grants worth up to £2,000 via its British Gas Energy Trust and Individuals Fund. You do not need to be a British Gas customer to apply.
Other firms, such as EDF, E.ON and Octopus Energy offer grants to customers.
Eligibility rules will vary, so contact your supplier for more information.
REGISTER FOR ASSISTANCE: Thousands of vulnerable households, including those who are elderly or ill, are missing out on perks such as free gas safety checks and support if they are struggling with their bills.
To get access to these, you need to register for the Priority Services Register.
REDUCE USE: Cutting your energy use is the easiest way to save money on bills now.
Before you put your heating on this winter, read Energy Saving Trust’s easy energy saving tips at energysavingtrust.org.uk.
For example, reducing washing cycles and using lower temperatures could cut £24 a year, or installing draught-proofing can save £80 a year.
LOOK FOR ADVICE: Check to see if you could get help with energy bills such as the £300 Winter Fuel Payment or £150 Warm Home Discount.
See citizensadvice.org.uk. Your local council may also offer cash help with energy bills if you are on a low income via the Household Support Scheme. Contact them directly to check.
How do I calculate my energy bill?
BELOW we reveal how you can calculate your own energy bill.
To calculate how much you pay for your energy bill, you must find out your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.The standing charge is a daily charge that is paid 365 days of the year – irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details, you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type – this will give you your usage costs.
You’ll then need to multiply each standing charge by 365 and add this figure to the totals for your usage – this will then give you your annual costs.
Divide this figure by 12, and you’ll be able to determine how much you should expect to pay each month from April 1.