Energy bills will rise for those on the price cap from January but households can do certain things to make sure their outgoings remain as low as possible
Britons are being reminded to take action before energy bills rise for millions of households in a couple of days.
Ofgem’s energy price cap will rise by £94 a year, based on typical use for households on dual fuel paying by direct debit, in the New Year.
Families are being urged to take a reading of their home’s energy meter before the regulator’s price cap rises.
This is because an updated meter reading could help stop a household’s energy supplier from estimating bill prices which are not accurate to a home’s usage.
If a home’s meter reading is lower than the supplier’s estimate, households can ask their energy provider to take action.
Suppliers could then lower their customer’s monthly direct debit to a more suitable amount to reflect the meter reading.
The energy cap will jump from £1,834 to £1,928 a year for households of average usage, although people could pay more than this, such as if they use more energy.
Through the cap, Ofgem sets a limit on the maximum amount energy suppliers can charge homes for each unit of gas and electricity, and the standing charge.
It is not a cap on how much someone can be charged for the energy that they use.
If someone uses more energy than usual, they will have to pay their energy provider more money.
A typical household on the price cap that pays their energy bills via direct debit currently pays the following rates:
However, the same household will be on these rates from January 1 once Ofgem changes the price cap:
The rates for prepayment meter customers are slightly different with the average household currently paying:
From the beginning of the New Year, prepayment meter customers will start to pay based on the following rates:
