Energy bills set to RISE this winter in ‘disappointing’ blow for millions of households
ENERGY bills are set to rise for millions this winter, experts have predicted.
Energy consultancy Cornwall Insight said it expects the Ofgem price cap to rise by 1% from January 1.
This means the typical household on a dual-fuel tariff will see their bills rise from £1,717 now to £1,736.
The energy experts had previously predicted energy bills would fall, rather than rise, by 1% to £1,697.
They said forecasts showed prices would be “staying relatively high for the remainder of winter“.
However, the consultancy also said it expects energy prices to fall slightly next April and October.
It’s worth noting, these are just predictions and Ofgem will announce what the price cap for January will actually be on Friday.
Craig Lowrey, principal consultant at Cornwall Insight, said: “Supply concerns have kept the market as volatile as earlier in the year and additional charges have remained relatively stable, so prices have stayed flat.
“While we may have seen this coming, the news that prices will not drop from the rises in the autumn will still be disappointing to many as we move into the colder months.”
It’s worth bearing in mind, based on Cornwall Insight’s predictions, your energy bills may not rise to £1,736 in January.
The Ofgem price cap simply sets a limit on the maximum amount suppliers can charge customers per unit of gas and electricity.
So, if you use less energy you won’t see your bills rise to this figure, but the amount you are charged for your energy will still go up.
The latest prediction from Cornwall Insights come after the price cap rose in October, from £1,568 to £1,717 – a rise of £149.
Nous.co has created a calculator which tells you how much you pay now under the most recent price cap.
How to save money on your energy bills now
There are steps you can take now to drive down energy bills, even before any potential price rises in January.
One is by setting your thermostat to the right level, which Citizens Advice says is between 18°C and 21°C.
That means if yours is set to above 21°C already, it might be worth dialling it down to cut costs.
Switching appliances off standby is another quick way to save around £45 a year, according to the Energy Saving Trust (EST).
Draught-proofing windows and doors is another way, and could save you around £80 over 12 months.
Plus, ditching your tumble dryer and drying your clothes on a heated airer will likely save you £10s over the colder months.
Another way you might be able to save money is by switching to a fixed energy deal now.
The advantage to fixed energy deals is they see you charged the same gas and electricity rates throughout the contract term.
Richard Neudegg, director of regulation at Uswitch.com, said: “There are now a range of fixed deals available that are significantly cheaper than the predicted price cap for January, so it is well worth running a comparison to see how much you could save.
“Right now, the average household could save up to £120 per year against the current price cap by switching to a fixed deal.”
Uswitch said the cheapest fixed deal on the market is Outfox the Market’s Dual November 2024 tariff, costing £1,597 for typical consumption.
If you’re struggling to pay for your energy bills already and are worried about the January price rises, you also may be eligible for a grant.
A number of energy firms offer struggling customers free money if they have fallen into debt, including British Gas, EDF and Octopus.
What energy bill help is available?
There's a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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