Energy prices are on the up again, with the price cap now confirmed to be rising by 2% at the start of October.
The increase, which is slightly more than analysts expected, means a household using a typical amount of energy will pay £1,755 a year, up £35 a year on the current cap.
This is based on a typical household with average energy usage, paying by direct debit on a dual fuel tariff (meaning gas and electricity are paid for together).
What you’ll actually end up paying is always determined by your household’s energy use. Those who use other payment methods, including pre-pay meters, also pay differing amounts.
To get an accurate idea of how your monthly bills will change, you’ll need to look at how both the standing charges and unit prices are changing, for electricity and gas (assuming you have both), and compare this to your usage. This can seem complicated but there are online calculators that can help.
It’s important for customers to remember this latest rise only applies to price-capped energy tariffs from October, meaning customers who switch and fix now can protect themselves from price rises this coming winter.
Rest assured your energy supply won’t be interrupted if you switch, and many suppliers offer cashback or refer-a-friend incentives which increase your overall saving.
Many people are also put off switching by the worry that they’d be stuck paying more if the price cap were to fall. But although we don’t know exactly what will happen to the price cap each quarter, we’re not expecting any dramatic drop.
Money saving expert Martin Lewis says there are several fixed deals on the market which are as much as 15 per cent cheaper than the predicted new rate, working out at around £250 cheaper a year.
Fixing will also give you certainty over what you’ll be paying, rather than waiting to see what the price cap does each quarter.
Moneysavingexpert.com is a good source of information on current deals, but comparison sites like GoCompare and Uswitch will be able to show you which deals would work best for your circumstances.
Worried about energy debt or rising costs? Speak to your energy supplier or a charity such as Marches Energy Agency, LEAP (Local Energy Advice Partners) and National Energy Action.
There may be grants or other support you could be eligible for – including the Warm Homes Discount Scheme which the government has announced will be expanded to 2.7 million more households this winter.
Housing Plus Group’s energy advice service is supported by the Cadent Foundation.